1. Net income is $100,000 and common stock dividends paid are $100,000 for the year.. Retained earnings were $500,000 at the beginning of the year. The end of the year balance in retained earnings would be
A) $600,000
B) $700,000
C) $300,000
D) $400,000
E) $500,000
2. The maturity of an issue of preferred stock is
a. the same as the longest maturity bond issued by the firm
b. variable, between 15 and 30 years
c. indefinite, just as the maturity of common shares
d. renewable every five years