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umka21 [38]
3 years ago
8

Which of the statements below is​ FALSE? A. Preferred stock does not have a maturity date. B. Preferred​ shareholders' dividend

claims take precedence over common​ shareholders' dividend claims. C. Preferred stock cannot be converted into common stock. D. It is common for companies to issue preferred stock with the right to convert to common shares after a specific waiting period
Business
1 answer:
Katarina [22]3 years ago
7 0

Answer:

C. Preferred stock cannot be converted into common stock.

Explanation:

"Equity" refers to shareholders' ownership in a company. Such ownership can be classified into as "preferred stock" or "common stock."

"Preferred stock" is also known as "preferred shares." It is considered a <em>hybrid instrument</em> because it possesses<u> combination of features</u> which cannot be found in a common stock. A "common stock," on the other hand, refers to ordinary shares that entitles the holder.

<u>Remember that a preferred stock can be converted into a common stock.</u> This means that it can be exchange for a particular number of shares, depending on the situation. The <em>investor</em> and the<em> board of directors</em> have the ability to convert some preferred stocks into common stocks. There are times when the stocks already have a specified date for conversion.

So, this explains the answer.

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Unrealized holding gains or losses which are recognized in income are from debt securities classified as
Serga [27]

Answer:

Trading.

Explanation:

In Business management, when a gain or loss is realized, it simply means that the owner of stock or other securities has sold it. Thus, these unrealized gains or losses are generally referred to as paper profits or losses.

Basically, when the value of a stock being bought by an investor reduces (falls) while he or she is yet to sell it, it is known as an unrealized loss.

However, when the value of a stock being bought by an investor rises (increases) while he or she is yet to sell it, it is known as an unrealized gains.

Hence, unrealized holding gains or losses which are recognized in income are from debt securities classified as trading.

3 0
3 years ago
g Declaring bankruptcy by the bond issuing firm ______ . a. has no impact on value of its bonds b. increases the value of its bo
Scilla [17]

Answer:

c. decreases the value of its bonds

Explanation:

There is a significant decrease in the value of the bond if the firm declares bankruptcy.

4 0
3 years ago
Exercise 14-04 a-c Bonita Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,70
PilotLPTM [1.2K]

Answer:

Factory Overheads  $182,420

Manufacturing overhead $ 396,820

Product costs $396,820

Period costs $ 75,720

Explanation:

Bonita Company

Direct materials used 141,700

Direct labor $72,700

Factory Overheads  $182,420

Factory utilities $16,000

Depreciation on factory equipment 14,250

Property taxes on factory building 2,600

Indirect factory labor 53,500

Indirect materials 85,000

Factory repairs 2,970

Factory manager’s salary 8,100

Manufacturing overhead $ 396,820

Product costs $396,820

Advertising 15,600

Office supplies used 3,420

Sales salaries 50,000

Depreciation on delivery trucks 4,900

Repairs to office equipment 1,800

Period costs $ 75,720

Manufacturing Costs are costs used in the manufacture of products.

Product Costs = Direct materials + Direct Labor + Manufacturing Overheads

Period Costs include Marketing and Selling Expenses , Administrative Expenses.

5 0
3 years ago
A tenant with a triple net lease rents a building that has the following yearly operating expenses: Property taxes $5,000, Utili
bonufazy [111]

Answer: $13500

Explanation:

The triple net lease refers to a lease agreement whereby the tenant pays all the property expenses such as property taxes, building insurance, utilities, repairs and maintenance.

Therefore, based on the question given, the expenses to be paid will be:

Property taxes = $5,000

Add: Utilities = $7,000

Add: Repairs & Maintenance = $1,500

Total = $13500

4 0
3 years ago
Identify which of the following statements is true.
Papessa [141]

Answer:

B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

Explanation:

The statement written in the option B is correct.If both accumulated and current E&P have low balances,then we cannot corporate distribution as dividend rest of the options are false.Hence the answer is option B.

6 0
3 years ago
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