Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $6.50 per

Question:

Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The is $6.50 per share and has not been paid for 3 years. If Kuhns earned $3 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?
a) $19.50 per share
b) $15.00 per share
c) $13.00 per share
d) $6.50 per share

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...