Question: 1. A corporation has issued and outstanding
(i) 9,000 shares of $50 par value, 10% cumulative, nonparticipating preferred stock and
(ii) 27,000 shares of $10 par value common stock. No dividends have been declared for the two prior years. During the current year, the corporation declares $288,000 in dividends. The amount paid to common shareholders is
(a) $243,000.
(b) $153,000.
(c) $135,000.
2. What is a premium on stock issuance?
3. Who is intended to be protected by minimum legal capital?