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3 years ago

Which one of the following is not an ownership right of a stockholder in a corporation?

Business

1 answer:

Serga [27]3 years ago

6 0

Answer:

The correct answer is option d.

Explanation:

The common stockholders in a corporation get voting generally, one vote per share held. They can vote in the process of electing the board of directors who oversee the management of the corporation.

Thus these stockholders up to a certain degree have the ability to control management.

They get to share corporate earnings of the business in the form of dividends. But during the time of liquidation, the common stockholders are paid at the very last. The preference is to pay creditors, bondholders, and preferred shareholders first.

Though the dividends on the common stock are declared by the management or the board of directors and not the shareholders.

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A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one

alexandr402 [8]

Answer:

Mitsui Electronics, Ltd.

1a. Payback period = 5.6 years

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

2a. Simple rate of return = 17.86%

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

Explanation:

a) Data and Calculations:

Purchase cost of the equipment = $ 448,000

Annual cost savings that will be provided by the equipment = $ 80,000

Life of the equipment = 10 years

1a. Payback period = 5.6 years ($448,000/$80,000)

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

Annual return = $80,000

Initial cost of the equipment = $448,000

2a. Simple rate of return = 17.86% ($80,000/$448,000 * 100)

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

6 0

3 years ago

During 2013, Company A has the following transactions involving its common and preferred stock:

Dennis_Churaev [7]

Answer:

Explanation:

Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares

Bank A/c………Dr. 520000

To Share Capital A/c. 160000

To Paid in excess of par 360000

Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share

Bank A/c………Dr. 900000

To Preferred Stock A/c. 600000

To Paid in excess of par. 300000

When the market value of the common stock reached $15 a share, company A declared a 3-for-1 stock split reducing the par value to $188 per share.

Share Capital (par value at 8) 400000

To Share Capital (par value at 2.67)

400000

7 0

3 years ago

The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will

Triss [41]

Answer and Explanation:

Given that

The Sale is made for $900

Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days

Now the journal entry to record the receipts of a payment within discount period is

Cash Dr $882

Sales discount $18

To Account receivable $900

(Being the cash received)

3 0

3 years ago

(CO I) Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. Six month Canadian securities have an annualized r

Natali5045456 [20]

Answer:

U.S. dollar-Canadian dollar exchange rate is $1.5961

Explanation:

given data

1 U.S. dollar = 1.60 Canadian dollars

annualized return = 6%

annualized return = 6.5%

time = 180 day

to find out

what is the U.S. dollar-Canadian dollar exchange rate

solution

we know that 1 U.S. dollar equal to 1.60 Canadian dollars

and

exchange rate for 180 days is

exchange rate = Canadian dollar ×( 1 + canadian interest rate ) / ( 1+ US interest rate) .....................1

put here all these value

exchange rate = Canadian dollar ×( 1 + canadian interest rate ) / ( 1+ US interest rate)

exchange rate = 1.60 ×( 1 + 0.03 ) / ( 1+ 0.0325)

exchange rate = 1.5961

U.S. dollar-Canadian dollar exchange rate is $1.5961

6 0

3 years ago

Ginger, Inc., has declared a $5.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percen

lesantik [10]

Answer: $89.68

Explanation:

The Ex-dividend measures how much a stock price drops as a result of the disbursement of dividends. It is calculated by subtracting the dividend from the current stock price.

In the above question the IRS require that taxes be withheld at the time that the dividend is paid.

This means that taxes have to be accounted for first before ex - dividend is calculated.

After tax dividend = 5.40 * ( 1 - 0.2)

After tax dividend = $4.32

Solving for Ex-dividend gives,

= 94.00 - 4.32

= $89.68

The ex-dividend price will be $89.68

4 0

3 years ago