Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 12 % annual dividend and a $100 par value and was sold at $97.50 per shar
Answer:
a.a debit to Cash Dividends for $120,000.
Explanation:
The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.
When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.
As such, since the company has 80,000 shares and the declared dividend was $1.50,
Total dividend paid = $1.50 × 80000
= $120,000.
Hence cash dividend is debited with $120,000 on payment.
Answer:
D. They expect these shares to have greater growth opportunities.
Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.
A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.
Answer:
B. full-service agency.
Explanation:
Full service advertising agency has the ability to handle all marketing process of a company. Starting from the creation of the product until the product is received by customers.
One thing that differentiate full-service agency and normal advertising agency is their involvement in the production process. Normal advertising agency do not involved in the production process.
Full-Service agency on the other hand, involved from the planning, production, and the communication process with the public. They will ensure that the production look goods in term of aesthetic, making sure that the public perception toward the product is effective, and they will also provide customer service to establish positive relationship with the cusotmers.
Answer:
Cost of hedging = $24,000
Explanation:
cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000
Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.
