A _____ is a report based on research of compensation rates for workers performing similar jobs in other organizations.

Assuming that the company has retained earnings of "$86,000", all of which is to be paid out in dividends, and that preferred di

Sladkaya [172]

Answer:

a. preferred stock=$32000 , ordinary stock=$54000

b. preferred stock=$16000 , ordinary stock=$70000

Explanation:

Lets assume the company has two class of preferred stock, cumulative and non-cumulative. Cumulative preferred stock are shares whose fixed return (i.e fixed dividend) if not paid in one accounting period accumulates with forthcoming years' return and is paid in accumulation whereas non-cumulative preferred stock holders won't be paid for dividends not paid in a year.

Lets assume, Company has 2000 $100 par value 8% preferred stock and 5100 $50 par value ordinary shares.

1st case: CPS (Cumulative preferred stock) and OS (Ordinary stock.)

$86000 of retained earnings will be distributed as follows:

Preferred Stock dividend each year: 2000×$100×0.08

PS dividend=$16000 per year

Now accumulate for 2 years,

CPS dividend = $16000×2

CPS dividend = $32000

After preferred stock holders are paid, the remaining retained earnings are wholly distributed to ordinary stock holders.

Ordinary stock dividend = $86000 - $32000

Ordinary stock dividend = $54000.

2nd case: NCPS (Non-cumulative preferred stock) and OS (Ordinary stock).

$86000 of retained earnings will be distributed as follows:

NCPS dividend for the current year only = 2000×$100×0.08

NCPS dividend for the current year only = $16000

Now, the remaining is distributed to ordinary stock holders as follows:

Ordinary stock dividend = $86000 - $16000

Ordinary stock dividend = $70000

3 0

3 years ago

A country is in the midst of a recession with real GDP estimated to be $4.5 billion below potential GDP. The government's policy

VARVARA [1.3K]

Answer:

a. The government needs to increase spending by $0.45 billion and decrease taxes by $0.5 billion.

b. The real GDP will fall short of potential GDP by $3.6 billion.

c. The real GDP will fall short of potential GDP by $4 billion.

d. If government overestimates MPC change in spending or taxes will be too small.

Explanation:

The GDP gap is $4.5 billion.

a. The marginal propensity to consume is 0.90.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.9}$

= 10

The government needs to increase spending by

= $\frac{GDP\ Gap}{Government\ spending\ multiplier}$

= $\frac{4.5}{10}$

= $0.45 billion

Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.9}{1-0.9}$

= -9

The government needs to decrease taxes

= $\frac{GDP\ Gap}{Tax\ multiplier}$

= $\frac{4.5}{9}$

= $0.5 billion

b. The marginal propensity to consume is 0.50.

Government spending multiplier

= $\frac{1}{1-MPC}$

= $\frac{1}{1-0.5}$

= 2

If the government increases spending by $0.45 billion,

The real GDP will increase by

= $Increase\ in\ spending\ \times\ Spending\ multiplier$

= $\$ 0.45\ \times\ 2$

= $0.9 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.9 billion

= $3.6 billion

c. Tax multiplier

= $\frac{-MPC}{1-MPC}$

= $\frac{-0.5}{1-0.5}$

= -1

If the government decreases taxes by $0.5 billion

The real GDP will increase by

= $$0.5\ billion\ \times 1$

= $0.5 billion

The real GDP will fall short of potential GDP by

= $4.5 billion - $0.5 billion

= $4 billion

d. If the government overestimates the value of the MPC, then its change in spending or taxes will be too small and real GDP will fall short of potential GDP.

4 0

3 years ago

It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (

dybincka [34]

Answer:

The correct answer is the option A: a person with a high opportunity cost of time.

Explanation:

To begin with, the opportunity cost of something is what the person sacrificies in order to be doing that thing. Therefore that when we talk about the opportunity cost of time it refers to what the person sacrificies in order to do something with that time. If the person has a high opportunity cost of time then the sacrificies that he made with that time will be higher than other person that has a low opportunity cost of time, meaning that the time spent by that person is less important than to the one that has a lot of time to spare.

6 0

3 years ago

Identify a few examples of incentives that someone might encounter in his or her daily life. Instructions: In order to receive f

spin [16.1K]

Answer:

Receiving five cents for recycling glass bottles
Parking fines for illegal parking
Tax breaks for 401(k) retirement contributions checked

Explanation:

Recycling is good for the environment and also means companies spending less because they wouldn't have to reproduce the recycle material from scratch. Paying a person money for recycling the glass bottles is an incentive that is meant to encourage them to do it more.

Not all incentives are positive however. Some are negative and aimed at reducing a behavior. Fining people for illegal parking is an example as the logic is that the offending party will think of the fines the next time they want to park illegally and refrain from it.

Offering tax breaks to a person in order to get them to save is an incentive because they are being offered to keep more of their money if they save more.

4 0

3 years ago

Which of the following would be considered a subtopic for a mind map?

snow_lady [41]

Answer:

Free youngboy

Explanation:

and blogging would be considrerd the sub

3 0

3 years ago

Read 2 more answers