1.) Assume Microsoft announced a 2 for 1 stock split on February 17, 2017. Before the stock split Microsoft had 3.5b shares outstanding with a par value of .02 per share. After the stock split shares oustanding and par value would:

A) remain unchanged

B) be 1.75b shares outstanding and a par value of .01 per share.

C) be 7.0b shares outstanding and a par value of .01 per share.

D) be 3.5b shares outstanding and a par value of .01 per share.

2.) The Surf's Up issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $18,000 in 2018. Assuming the preferred stock is cumulative, how much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

A) $6,000 to preferred stockholders and $12,000 to common stockholders.

B) $18,000 to preferred stockholders and $0 to common stockholders.

C) $12,000 to preferred stockholders and $6,000 to common stockholders.

D) $9,000 to preferred stockholders and $9,000 to common stockholders.