Answer:
a. $0
The company was organized in January, Year 1. They do not have to pay dividends because the company just started operations. The cumulative dividends are only to be paid at the end of the period so there is no dividend arrear here.
b. Preferred shareholders are meant to get:
= 4,000 shares * 50 * 6%
= $12,000 per year
As they are owed $12,000 from the first year and are now owed for the second, the dividends they will get is:
= 12,000 + 12,000
Preferred Dividends = $24,000
Ordinary shareholders get what is left:
= 25,000 - 24,000
= $1,000
Answer:
A) decrease the degree of operating leverage
Explanation:
The contribution margin is
sales - variable:
(sales + 2) - (variable + 2) = sales - variable
no change
so B is FALSE
as the contribution margin ratio is:
(sales - variable ) / sales
this increase will impact the contribution margin ratio.
(sales + 2 - (variable +2))/ (sales + 2)
(sales - variable) / (sales + 2)
the CMR will decrease.
so D is FALSE
the break-even on sales will increase as the CMR decreases
more units are needed to fullfil the fixed cost
so C is FALSE
A) decrease the degree of operating leverage
ΔEBIT / Δrevenue
sales increase and the variable cost increases
a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.
When you have a gross income the expenses incurred are yet to be removed— it is just total sales less purchases. for net income the expenses are removed for the gross profit
Answer:
The correct answer is letter "A": True.
Explanation:
Risk-adjusted return is a measurement of risk for an investment or portfolio. It involves comparing the return of the investment or portfolio against the benchmark which is the overall performance of the market (typically compared with the S&P 500 index). For that purpose, the approach makes use of indicators such as <em>the alpha, beta </em>or <em>standard deviation</em>. <em>Beta </em>measures how correlated is the movement of a security according to the overall market movement. If a stock exceeds the return of the S&P 500 index, it means it is outperforming the market.
