At the beginning of 2016, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2018 if Emily pays $1,000,000 in dividends?
A) $500.
B) $1,500.
C) $1,650.
D) $10,000.

Question

Quizplus · Accepted Answer

$100 × 5% × 100 shares × 3 years.

At the Beginning of 2016, Emily Corporation Issued 10,000 Shares