At the beginning of 2013, Priester Dental Supplies had outstanding 4 million shares of $100 par, 8% cumulative, non-participating preferred stock and 20 million shares of $1 par common stock. During 2013, Priester declared and paid cash dividends of $100 million. No dividends had been declared or paid during 2012. On January 12, Priester issued a 5% common stock dividend when the quoted market price the common stock was $20 per share. What amount of cash did Priester distribute to common shareholders?

At the beginning of 2013, Priester Dental Supplies had outstanding 4 million shares of $100 par, 8% cumulative, non-participating preferred stock and 20 million shares of $1 par common stock. During 2013, Priester declared and paid cash dividends of $100 million. No dividends had been declared or paid during 2012. On January 12, Priester issued a 5% common stock dividend when the quoted market price the common stock was $20 per share. What amount of cash did Priester distribute to common shareholders?




A) $36 million.
B) $56 million.
C) $68 million.
D) $100 million.






Answer: A


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