Answer:
The correct answer id True.
Explanation:
Common stock is last stock in line for any corporate payouts, including dividends and liquidation payments.
The holder of common (ordinary) stocks are consider to be the owner of the company. They have voting right. These shares entitled their holder to dividends that may vary in amount and may even be missed, depending on the state of the company. However with greater reward their comes greater risk. So in case of winding up they will be last one to get any benifit after settlement of all claim.
Answer:
B. $5600
Explanation:
Purchase price = $35,000
Expected life cycle= 10 years
Salvage value= $3000
Depreciation expense at the year 2= ?
Solution:
Using a straight line method.
Depreciation= Purchase price/expected useful life( straight line method)
Depreciation= 35,0000/10
=$3500 which is equivalent to 10% of the original price.
Using double declining-balance method, the value will double to
Depreciation expense in Year 1 = (20% of $35000) $7000
Depreciation expense in Year 2=
(20% of $28,000) $5600
Answer: $1.21
Explanation:
Earnings per share = (Net income - Preferred dividends) / Weighted average number of common shares outstanding
Weighted average number of shares outstanding:
Opening = 300 million shares
Treasury stock on March 1 = 54 million * (10 / 12 months) = 45 million shares
Share balance = 300 - 45 = 255 million shares
Dividend to be added = 255 * ( 1 + 5%) = 267.75 shares
Add Treasury stock sold = 267.75 + (9 million * 3/12 months)
= 270 million shares
Earnings per share = (400 - (8 * 9% * 100) ) / 270
= $1.21
Answer:
$95,000
Explanation:
The computation of the amount of dividends will common stockholders receive is shown below:
But before that first we have to determine the preference shareholder for 3 years i,e 2015, 2016 and 2017
= 15,000 shares × 9% × $100 × 3 years
= $405,000
Now the amount of dividends will common stockholders receive is
= $500,000 - $405,000
= $95,000
<span>The money supply can be reduced by not continuing to print new bills. Banks could be asked not to distribute more than a set amount of money, thereby lessening the amount of money put into general circulation. Sellers could raise the price of their goods and services. When prices rise, people take a closer look at their goals and their disposable income. Cost of living usually results in more prudent spending, more savings, and less money in general circulation.</span>
