Alto Company Issued 7% Preferred Stock with a $100 Par

Multiple Choice

Alto Company issued 7% preferred stock with a $100 par value.This means that:

A) Preferred shareholders have a guaranteed dividend.
B) The amount of the potential dividend is $7 per year per preferred share.
C) Preferred shareholders are entitled to 7% of the annual income.
D) The market price per share will approximate $100 per share.
E) Only 7% of the total paid-in capital can be preferred stock.