Reference no: EM132953389

Problem 1: Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common shares outstanding. In its first three years of operation, the company paid cash dividends as follows: Year 1: $8,000; Year 2: $18,000; and Year 3: $24,000. The amount of dividends received by the common shareholders in year 3 was

A) $8,000.
B) $12,000.
C) $16,000.
D) $20,000.

Problem 2: The maximum number of shares that a firm can issue is the number of

A) issued shares.
B) authorized shares.
C) outstanding shares.
D) permissible shares.

Problem 2: Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common shares outstanding. In its first three years of operation, the company paid cash dividends as follows: Year 1: $8,000; Year 2: $18,000; and Year 3: $24,000. The amount of dividends received by the preferred shareholders in year 2 was

A) $8,000.
B) $9,000.
C) $12,000.
D) $18,000.