1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hjlf
3 years ago
15

Rachel's Designs has 1,800 shares of 6%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining

shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $18,000 in 2021. How much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders
Business
2 answers:
stepladder [879]3 years ago
8 0

Answer:

Dividend to Preferred Stockholder = $16,200

Dividend to Preferred Stockholder = $1,800

Explanation:

Preferred stockholders has an advantage that they are paid first when there is any dividend is announced. The residual dividend will be divided into the common stockholders. Any prior years due dividend and current years dividend associated with preferred share will be paid first.

As per given data

Preferred stock value = 1,800 x $50 = $90,000

Dividend on preferred shares = $90,000 x 5% = $5,400 per year

As in 2019 and 2020 no dividend was paid so $10,800 is due in respect of preferred dividend.

2021

Total preferred dividend = Preferred Dividend arrears + Current year preferred dividend = $10,800 + $5,400 = $16,200

Dividend declared = $18,000

Dividend Payment to common stockholders = Dividend Declared - Total due preferred dividend = $18,000 - $1,6200 = $1,800

Dividend of $16,200 will be paid to preferred stockholders and dividend of $1,800 for common stockholders in 2021.

Advocard [28]3 years ago
5 0

Answer:

Preferred dividend in arrears = $10,800

Preferred dividend for 2021 = $5,400

Remaining dividends to common stockholders = 1,800

Explanation:

The computation of preferred stockholders and common stockholders is shown below:-

Preferred dividend in arrears for 2019 and 2020   $10,800

(1,800 × $50 × 6% × 2)

Preferred dividend for 2021                                       $5,400

(1,800 × $50 × 6%)

Remaining dividends to common stockholders         1,800

Total dividends                                                             $18,000

Therefore in every year Cumulative dividend will arise whether paid or not.

All dividend should be paid to preferred stock, if something is left will be paid to common stockholders.

You might be interested in
Omega, Inc. sells its fitness wrist band for $100. It cost the company $62 to make the product. While Tom values the Omega wrist
dangina [55]

Answer:

B. each customer's reservation price.

Explanation:

Reservation price is the highest amount a buyer would be willing to pay for a good or service.

I hope my answer helps you

7 0
3 years ago
Read 2 more answers
_______ has been defined as the process of identifying consumers with similar attributes who are likely to exhibit a similar buy
Hoochie [10]

Global market segmentation has been defined as the process of identifying consumers with similar attributes who are likely to exhibit a similar buying behavior.

<h3><u>Explanation:</u></h3>

The process involved in the identification of a particular segment of customers to sell the products refers to the Global Market Segmentation. Those customers of the groups that has the nature of similar behavior in buying of certain products will be grouped together under this process.

The people in the identified group will have the same purchasing behavior. Thus, when the customers of similar buying behaviors are grouped then the targeting process of the business will become easier. Fir example if you are manufacturing chocolates then it will be easier to target on;ly children and the adults.

8 0
3 years ago
In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?
Kazeer [188]

Answer:

B, Italy

Explanation:

In Italy, 60 percent of the shares of a public company are owned by the 3 largest shareholders. This invariably means that the decision making of public companies are mostly at the mercy of just 3 persons as against larger numbers in other countries.

Cheers

5 0
3 years ago
G. How trustworthy do you think the secondary source is? Do you think this source
melomori [17]

Answer: The secondary source on a topic may be biased because the information is translated and the text and information could be altered

Explanation:

3 0
3 years ago
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations up
frozen [14]

Answer:

Yes it does as the company expect to pay for the warranty but doesn't know as it may occur or don't dependion upon the notebook hardware and software performance over the 90-days period

Warranty expense 29,500 debit

   Warranty Liability       29,500 credit

Explanation:

We will record a warrant liability for the 5% of the mount sold. As the warranty liability is generated at the time of sale which occur in December

3 0
3 years ago
Other questions:
  • What percentage of american employees work for an employer that does not offer a traditional pension or retirement plan?
    11·1 answer
  • Mickey is very picky and insists that his mom makes his breakfast with equal parts of cereal and apple juice.
    10·1 answer
  • Stickiness is an important attribute for which revenue model?
    10·1 answer
  • Is product packaging an important part of product planning
    10·1 answer
  • If real GDP declines in a given year, nominal GDP _____. rev: 04_09_2018 Multiple Choice must also be increasing may either rise
    8·1 answer
  • Prepare an income statement for Bill’s Extreme Bowling, Inc., for the month ended July 31. (This income statement would be consi
    10·1 answer
  • Please help. Describe how stocks are purchased by investors.
    8·1 answer
  • Milton Snoeyenbos argues that:_____.
    7·1 answer
  • Which of the given stakeholders form part of a company’s secondary stakeholders?
    13·1 answer
  • Based on the substitution effect, which example reflects how people would likely respond to a rise in gas prices
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!