Question 20.

A

Oriole Company has 153000 shares of $10 par value common stock and 76500 shares of $10 par value, 4%, cumulative, participating preferred stock outstanding. Dividends on the preferred stock are one year in arrears. Assuming that Oriole wishes to distribute $290000 as dividends, the common stockholders will receive

$172890.

$117110.

$228800.

$ 61200.

B:

Which of the following is not a characteristic of an employee stock-purchase plan?

The plan offers no substantive option feature.

Substantially all full-time employees may participate on an equitable basis.

Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.

Discount from the market price of the stock no greater than would be reasonable in an offer of stock to stockholders or others.