Answer:
The correct answer is False because preferred dividends don't normally grow.
Explanation:
The preferred stock is an action that gives the holder an extra privilege, usually of an economic nature, with respect to what we commonly know as ordinary shares.
For example, the holder of a preferred stock has a higher hierarchy in the collection of dividends or in the distribution of the remaining equity in the event of bankruptcy by the company.
As with ordinary shareholders, preferred shares do not expire, but however, unlike ordinary shares, preferred shares do not legitimize their right to vote at ordinary or extraordinary shareholders meetings, nor do they assign some participation in the capital of the company. Likewise, the profitability of preferred shares is also not guaranteed, because it is linked to obtaining benefits.
Answer:
$320 left for me after all taxes have been paid.
Explanation:
Individual Tax is paid on dividend received from the investment in the shares. The corpporation declare the dividend after deducting the corporate tax.
Amount of Earning = Number of shares x Per share earning = 100 shares x $4per share = $400
Earning After tax = Amount of Earning x ( 1 - Individual Tax rate )
Earning After tax = $400 x ( 1 - 0.20 )
Earning After tax = $400 x 0.8
Earning After tax = $320
Answer: $14,350
Explanation:
When using the straight-line method, depreciation expense is uniform across the PPE's useful life.
Sometimes the company would like the PPE to have a residual value at the end of the useful life so we have to cater for this also.
The formula then for calculating Straight Line Depreciation goes thus,
Straight Line Depreciation Expense = Cost of PPE - Residual Value / Useful life.
= 78,500 - 6,750 / 5 years
= $14,350
$14,350 will be charged as Depreciation till the end of the 5th year at which point the Equipment will be worth $6,750.
