In which type of economy is a business owner most likely to benefit from free<br> enterprise?

Outstanding stock of the Marin Corporation included 54000 shares of $5 par common stock and 20000 shares of 5%, $10 par non-cumu

inn [45]

Answer:

The amount of dividends distributed to preferred stockholders in 2017 is $10000.

Explanation:

The preferred stock is non cumulative which means that if the company is unable to pay dividends on preferred stock in a certain year, the dividend for that year will not be accumulated and will not be paid in the next year.

Thus, the company only paid a dividend of $2700 in 2016 and the remaining dividends will not be payable by the company in year 2017.

The dividend on each share of preferred stock per year is = 10 * 0.05 = $0.5 per share

The number of shares of preferred stock are 20000.

The total dividends that will be paid to preferred stock holders in 2017 is = 0.5 * 20000 = $10000

Thus, out of the $27000 dividends of 2017, $10000 was distributed to preferred stockholders.

8 0

3 years ago

What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the

Montano1993 [528]

Answer: $32.05

Explanation:

Beta = 0.7

Dividend = $1.25

Growth rate = 4%

Risk free rate = 3%

Market return = 10%

Since, Required return = risk free rate + beta × (market rate - risk free rate)

We will then slot in the values and.this will be:

= 3% + 0.7 × (10% - 3%)

= 3% + (0.7 × 7%)

= 3% + 4.9%

=7.9%

The price of the stock will then be:

= D1/(Required return-Growth rate)

=1.25 / (0.079 - 0.04)

= 1.25 / 0.039

= $32.05

4 0

3 years ago

Upper management of a clothing store in the mall has decided that a good way to motivate employees is to consult with them about

sergey [27]

Answer:

Consider the following analysis.

Explanation:

The manager's assumption is that the employee work only for their own benefits and they need immediate punishment for poor work, intermediation, and minute-level supervision. This proves that he uses Theory X.

The upper management, on the other hand, is trying to initiate consultation with the employees before bringing out any improvement plan in the business process. This type of management style implicitly assumes that the employees are motivated and self-directed. This is Theory Y.

So, the first option should be correct.

Equity theory is something not contextual here. Equity theory works on the reduction of perceived inequality in the input and output of the employees as a means of motivation.

3 0

3 years ago

24. ABC Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary

nevsk [136]

Answer:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

Explanation:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Deferred tax asset=($400,000*20%)-$75,000

Deferred tax asset=$5,000

Income tax payable=$820,000*20%=$164,000

Income tax expense=$164,000-$5,000=$159,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

5 0

3 years ago

A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is c

taurus [48]

Answer:

Product development

Explanation:

A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is called product development.

A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.

Generally, there are four (4) stages in the product-life cycle;

1. Introduction.

2. Growth.

3. Maturity.

4. Decline.

7 0

3 years ago

In which type of economy is a business owner most likely to benefit from free enterprise?