1. The founders of Airbnb came up with their concept by challenging assumptions. What major assumption did they challenge?

1) That people like using online payment methods.

2) That no one would want to stay in someone else's bed.

3) That people don't like it when they don't have a place to stay when traveling.

4) That there are people who would like to rent out a room of their house.

2. Edward Accounting Services has an outstanding issue of 1,000 shares preferred stock with a $100 par value, an 9 percent annual dividend, and 5,000 shares of common stock outstanding. If the stock is cumulative and the board of directors has passed the preferred dividend for the last two years, how much must preferred stockholders be paid prior to paying dividends to common stockholders?