Question
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:
| Year 1 | $10,000 |
| Year 2 | 45,000 |
| Year 3 | 90,000 |
Determine the dividends in arrears for preferred stock for the second year.
a.$10,000
b.$30,000
c.$0
d.$25,000
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
