Answer: In year three the preferred stockholders would receive $7,000 and the common stockholders would receive $25,000.
Explanation: Preferred stockholders are always paid before common stockholders. Since this stock in cumulative it means that when there is not enough income in one year to pay the preferred stock then the company needs to pay them when they have the money in the future.
In this case the preferred stock is 5% of $100 par value and is cumulative. This means that every year the company needs to pay 5% times $100 par value on each stock, and there is 1,000 shares, so the total is $5,000 in preferred stock dividends.
In year one and two they did not declare enough dividends to pay this full amount. In year one they declared $2,000 and year two they declared $6,000. At the end of year two they should have received $10,000, but only received $8,000. In year three they need to pay the preferred stockholders the $2,000 that are in arrears, plus the $5,000 for year three, for a total of $7,000. Since there was $32,000 in dividends declared and $7,000 is going to the preferred stockholders, it means that there is $25,000 left for the common stockholders. $25,000/10,000 shares equals $2.50 dividend per share.
Answer:
The correct answer is The fundamental attribution error.
Explanation:
The Fundamental Attribution Error (EFA) is a phenomenon that occurs when we try to explain our own behavior with respect to that of others. Many times we find it hard to understand why a person acts as he acts. And we do not stop to look for the reasons that are the basis of their behavior.
A very clear example is to suspend an exam. If you have to explain to someone why you have suspended the exam, you probably mean that it was very difficult, that you had not rested, did not have time to study or even that the teacher suspended you.
Now imagine that it is another person who suspends and you have approved. Surely if you have to explain why you have suspended you will explain that it is a bit vague, that you have not studied enough and even that you were not interested in approving.
Social Security and Medicare benefits to elderly and retired people.
The right answer is none of the above, its Bonds payable.
