1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aleksley [76]
3 years ago
14

Lightfoot Inc., a software development firm, has stock outstanding as follows: 15,000 shares of cumulative preferred 4% stock, $

20 par, and 19,000 shares of $100 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $4,500; second year, $7,500; third year, $39,010; fourth year, $63,110.
Calculate the dividends per share on each class of stock for each of the four years.
Business
1 answer:
Nana76 [90]3 years ago
3 0

Answer:

Dividend Payment per unit

Year     Common Dividend  Preferred Dividend

1.                        0                                $0.3

2.                        0                                $0.5

3.                        $0.79                        $1.6

4.                        $2.69                        $0.8

Explanation:

Dividend distributed to preferred share is based on the predetermined rate associated with these share. When the dividend is declared preferred share dividend is paid first. The remainder is distributed between the common stockholders.

Value of Preferred share = 15,000 shares x $20 par value = $300,000

Dividend on Preferred share = $300,000 x 4% = $12,000 per year = $12,000 / 15,000 = $0.8 per share

Dividend Payment

Year  Dividend Declared   Common Dividend  Preferred Dividend

1.           $4,500                              0                         $4,500

2.           $7,500                               0                        $7,500

3.           $39,010                      $15,010                     $24,000

4.           $63,110                       $51,110                      $12,000

Dividend Payment per unit

Year     Common Dividend  Preferred Dividend

1.                        0                       $4,500 / 15,000=$0.3

2.                        0                       $7,500 / 15,000=$0.5

3.    $15,010/19,000 = $0.79      $24,000 / 15,000=$1.6

4.    $51,110/19,000 = $2.69       $12,000 / 15,000=$0.8

Working

Year  Dividend Declared   Common Dividend  Preferred Dividend Balance

1.           $4,500                              0                    ( 4,500 - 12,000) = ( 7,500)

2.           $7,500                               0         (-7,500+7,500-12,000) = (12,000)

3.           $39,010                      $15,010    (-12,000+39,010-12,000) = 0

4.           $63,110                       $51,110                     (63,110-12,000) = 0

You might be interested in
Which form of print presentation is a paid medium?
PSYCHO15rus [73]
I would say the most common type of paid medium is C, a newspaper.
This is due to the fact that you can subscribe to your local newspaper for a fixed amount of money monthly or yearly. It also includes advertising, ads, and branded content for business looking to get profit and growth.
8 0
3 years ago
The following information is available for Blossom Company:
Aleonysh [2.5K]

Answer:

Total Assets = $124,510

Total Liabilities = $38,320

Total Stockholders' equity = $86,190

Explanation:

Blossom Company

Balance sheet

As at December 31, 2022

Assets

<em>Current assets</em>

Cash                                       $6,390

Accounts receivable                2,100

Supplies                                   3,800

Inventory                                  2,920

Total current asset                                 $15,210

<em>Non-current asset</em>

Equipment (net)                                      109,300

Total assets                                             124,510

Liabilities and Stockholders' Equity

<em>Current liabilities</em>

Accounts payable                   $4,500

Interest payable                            670

Unearned service revenue          820

Salaries and wages payable        830

Total current liabilities                           $6,820

<em>Long-term liabilities</em>

Notes payable                                           31,500

Total liabilities                                        $38,320

<em>Stockholders' equity</em>

Common stock                                         58,900

Retained earnings (Balancing amount)  27,290

Total stockholders' equity                     $86190

Total liabilities and stockholders' equity $124,510

8 0
3 years ago
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
forsale [732]

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.

6 0
3 years ago
During the proofreading task of the completion stage of a business message, be sure to
Nikitich [7]
You have to read very carefully to make sure you dont miss any mistakes

3 0
2 years ago
You produce widgets for sale in a perfectly com- petitive market at a market price of $10 per wid- get. Your widgets are manufac
mihalych1998 [28]

Answer: No.

Explanation:

This is a Perfectly Competitive market and that means that you are a price taker who maximises output at a point where Marginal Revenue equals Marginal Cost ( MR = MC). As costs have gone up, it simply means that for the conditions to be satisfied, you need to produce less at the factory in Connecticut.

That does not mean that you have to produce more at the Massachusetts plant because it is already producing at capacity and increasing the marginal cost would violate the MR=MC rule as you have no control over the price so you cannot change Marginal Revenue. It is therefore better to keep the production level at the Massachusetts plant unchanged.

6 0
3 years ago
Other questions:
  • Which of the following could make it difficult for a student to get a housing or vehicle loan in the future?
    6·2 answers
  • When average total cost is at its minimum
    10·1 answer
  • The 3 types of partnerships are general partnership, unlimited partnership and unlimited liability partnership. Please select th
    14·1 answer
  • The possibility that management of the corporation may not be pursuing the same goals as the same goals as those of stockholders
    5·1 answer
  • Which of the following statements about price wars is true? Multiple Choice a. Firms that have to deal with the possibility of p
    6·1 answer
  • Are consumers only interested in making themselves as well off as possible in a material​ sense? consumers are
    14·1 answer
  • Write a critical evaluation of your learning outcome. In your response, consider: 1. Consider the content of this class as they
    7·1 answer
  • A trader sold short a cotton futures contract @ 76.12 cents per pound. The contract size is 50,000 pounds. How much does the tra
    8·1 answer
  • In Maddie's company, senior officers eat in the same cafeteria as the entry-level workers. On a trip to a different country, she
    6·1 answer
  • Alfred adler's theory is called _____ because of its emphasis on the uniqueness of the person. group of answer choices
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!