Reference no: EM132486074

Question 1: The cumulative feature of preferred stock

Option a. limits the amount of cumulative dividends to the par value of the preferred stock.

Option b. means that the shareholder can accumulate preferred stock until it is equal to the par value of common stock at which time it can be converted into common stock.

Option c. enables a preferred stockholder to accumulate dividends until they equal the par value of the stock and receive the stock in place of the cash dividends.

Option d. requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.

Question 2: Assume common stock is the only class of stock outstanding in the Blaze Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called

Option a. book value per share.

Option b. par value per share.

Option c. stated value per share.

Option d. market value per share.