human settlement and migration, the gathering of raw materials, and the manufacturing of finished products.
Answer:
The dividends payout to preferred stockholders is $113,400 as shown below.
Explanation:
The total dividends payable to holders of preferred shares can be computed thus:
Preferred shares dividends=9000*$90*14%
Preferred shares dividends =$113,400
Preferred shareholders have prior claims to dividends ahead of ordinary shareholders,but after bondholders' interest payments have been settled.
The same way they also have precedence in the distribution of company's assets before ordinary shareholders upon the liquidation of the company.
The downside is that they cannot share in excess profits after payment of dividends as they are part-owners of the company unlike ordinary shareholders.
Answer:
The correct answer is option B.
Explanation:
A monopolistic firm is characterized by a large number of buyers and sellers in the market producing differentiated products which are close substitutes, there are relatively easier entry and exit in the market.
In the given question, Teen Angle Hardware is looking for a niche or a slightly differentiated product to sell to teenagers. But is able to earn only a normal profit because there is a large number of firms in the market. And new firms can enter the market in the long run. So, this firm is an example of a monopolistic firm.
