Economics because it has to deal with money, which is important for a career in business.
Answer:
D) $130,000
Explanation:
We can compute this by calculating the total dividends payable to preferred stock holders each year.
Dividends payable = 10,000 * 90 * 0.10 = $90,000
Since the shares are cumulative, the total preferred dividend payable at the end of third year is = $90,000 * 3 = $270,000
So common share in dividend = Total paid - Preferred dividend cumulative
Common Dividend share = 400,000 - 270,000 = $130,000
Hope that helps.
Taxes are automatically withdrawn from paychecks.
Just think here itll come to you eventually
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Answer:
$32.14 per share
Explanation:
The computation of the current value of the single share is shown below:
= Current year dividend ÷ (Required rate of return - growth rate)
where,
Current year dividend is $2.25 per share
Required rate of return is 10%
And, the growth rate is 3%
So by placing these items, the current value is
= $2.25 ÷ (10% - 3%)
= $32.14 per share
