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3 years ago

9

Cork inc. declared a $160,000 cash dividend. it currently has 6,000 shares of 6%, $100 par value cumulative preferred stock outs

tanding. it is one year in arrears on its preferred stock. how much cash will cork distribute to the common stockholders?

1 answer:

BaLLatris [955]3 years ago

3 0

Cork has to pay preferreds first. Owe 6000 x 6 or 36,000 to preferred holders. So 160k - 36k = $124k left for common.

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Oduvanchick [21]

That statement is false

In business, the amount of equity could be changed through either of these two ways:

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(Bond valuation) You are examining three bonds with a par value of $1 comma 000 (you receive $1 comma 000 at maturity) and

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Answer:

Bond A, 5 years to maturity, semiannual coupons, 8%

Bond B, 10 years to maturity, annual coupon, 8%

Bond C, 15 years to maturity, semiannual coupon, 8%

a) market rate 8% semiannual

Bonds A and C will be worth $1,000 (par value)

price of bond B:

effective interest rate = 1.04² - 1 = 8.16%
PV of face value = $1,000 / 1.04²⁰ = $456.39
PV of coupon payments = $80 x 6.66192 (PV ordinary annuity factor, 8.16%, 10 periods) = $532.95

market price = $989.34

b) price of bond A:

PV of face value = $1,000 / 1.025¹⁰ = $781.98

PV of coupon payments = $40 x 8.75206 (PV ordinary annuity factor, 2.5%, 10 periods) = $350.08

market price = $1,132.06

price of bond B:

effective interest rate = 1.025² - 1 = 5.0625%
PV of face value = $1,000 / 1.025²⁰ = $610.27
PV of coupon payments = $80 x 7.69817 (PV ordinary annuity factor, 5.0625%, 10 periods) = $615.85

market price = $1,226.12

price of bond C:

PV of face value = $1,000 / 1.025³⁰ = $476.74

PV of coupon payments = $40 x 20.93029 (PV ordinary annuity factor, 2.5%, 30 periods) = $837.21

market price = $1,313.95

c) price of bond A:

PV of face value = $1,000 / 1.075¹⁰ = $485.19

PV of coupon payments = $40 x 6.86408 (PV ordinary annuity factor, 7.5%, 10 periods) = $274.56

market price = $759.75

price of bond B:

effective interest rate = 1.075² - 1 = 15.5625%
PV of face value = $1,000 / 1.075²⁰ = $235.41
PV of coupon payments = $80 x 4.91292 (PV ordinary annuity factor, 15.5625%, 10 periods) = $393.03

market price = $628.44

price of bond C:

PV of face value = $1,000 / 1.075³⁰ = $114.22

PV of coupon payments = $40 x 11.81039 (PV ordinary annuity factor, 7.5%, 30 periods) = $472.42

market price = $586.64

d) If the market rate is lower than the coupon rate, then the bonds will sell at a premium. The longer the maturity date, the larger the variations in market price due to different interest rates. E.g. the 15 year bond is more affected than the 5 year bond.

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Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of th

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Answer:

The answer is A.

Explanation:

If a a product is price elastic that means it is sensitive to price. If there is an increase in price, the quantity demanded of that product will drop and if there is a decrease in price, the quantity demanded of that product will rise. Price elasticity has a value greater than one.

Because the price rose from $200 to $250, quantity demanded fell from 8000 units to 6,000 units.

If it were to be inelastic, the quantity demanded will not change or will change with very little percentage.

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Answer:

lending act

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1. Two methods of accounting for uncollectible accounts are the a. direct write-off method and the allowance method b. allowance

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Two methods of accounting for uncollectible accounts are the direct write-off method and the allowance method.

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Allowance method:

Here, an estimate of future value of bad debt is charged in reserve account after a sale is completed.

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Timing: The bad debt expense identification is delayed under direct write-off method, while it is quick under the allowance method.

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