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
zloy xaker [14]
3 years ago
12

Raphael Corporation’s common stock is currently selling on a stock exchange at $85 per share, and its current balance sheet show

s the following stockholders’ equity section: Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 80,000 Retained earnings 150,000 Total stockholders' equity $ 280,000 Problem 11-5A Part 5 5.1 If two years’ preferred dividends are in arrears and the board of directors declares cash dividends of $11,500, what total amount will be paid to the preferred and to the common shareholders?
Business
1 answer:
konstantin123 [22]3 years ago
8 0

Answer:

Total preference dividend = $7,500

Equity dividend = $11,500 - $7,500 = $4,000

Explanation:

Total of stockholder's equity = $280,000

Less: Retained Earnings = $150,000

Less: Equity = $80,000

Preference Capital = $50,000

Rate of preference capital = 5%

Preference Dividend if in arrears would have to be paid first in priority to Equity.

Total preference dividend in arrears = $50,000 \times 5% = $2,500 per year

For 2 years = $2,500 \times 2 = $5,000

In the current year also firstly preference will be paid, therefore current year preference dividend = $2,500

Total preference dividend = $7,500

Equity dividend = $11,500 - $7,500 = $4,000

You might be interested in
Once you purchase a house. It typically appreciates in value. Appreciation is
Hitman42 [59]

Answer:

A.

Explanation:

Appreciation means that something increases in value therefore it is A.

7 0
3 years ago
NewCorp has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year
zmey [24]

Answer:

The cash flow to stockholders amounts to $45

Explanation:

Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.

The cash flow to stockholders is computed as:

Cash flow to stockholders = Dividend paid - New equity raised

where

Dividend paid is computed as:

Dividend paid = Net Income × %

= $360 × 35%

= $126

New equity raised is $81

So, putting the values above:

Cash flow to stockholders = $126 - $81

Cash flow to stockholders = $45

4 0
3 years ago
1. Reynolds Corporation has the following cost and production information available for the 10,000 units they plan to produce th
serg [7]

Answer:

Explanation:

Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:

(20 + 30 + 8 + 13 + 12 + 7)

90

Desired return

20% on 1440000

288000

Per unit 288000/10000.

28.8

Markup on cost

Desired return per unit

28.8

Cost 90

28.8 /90 = 32% on cost

Target sale price

90+28.8

= 118.8

3 0
3 years ago
The term____ refers to a market exchange that affects a third party who is outside or external to the exchange
amm1812
The term spillover refers to a market exchange that affects a third party who is outside or external to the exchange
4 0
3 years ago
Determine the annual financing cost of a 6-month (182-day) 20,000 discounted bank loan at a stated annual interest rate of 10 pe
ratelena [41]

Answer:

10.52%

Explanation:

The computation of the annual financing cost is shown below:

First we have to calculate the interest cost that is shown below:

= $20,000 × 10% × 182 days ÷ 365 days

= $997.26

Now the used funds is

= $20,000 - $997.26

= $19,003

Now the annual financing cost is

= ($997 ÷ $19,003) × (365 days ÷ 182 days)

= 10.52%

We assume there are 365 days in a year

3 0
2 years ago
Other questions:
  • Lucy was trying to decide between the three food choice of pizza and salad and a hamburger she chooses the salad in this case th
    11·2 answers
  • The yield to maturity on a bond is:
    6·1 answer
  • Brite-Way Lighting is based in California and sells products within the United States as well as to ten foreign countries. Brite
    14·1 answer
  • Emma Pebble and Chase Stone formed a partnership in a landscape business. Under their arrangement, Emma actively manages the com
    10·1 answer
  • If a treasury note has a bid price of $996.25, the quoted bid price in the wall street journal would be _________. none of the o
    9·1 answer
  • Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. Suppose also
    10·1 answer
  • Marin Factory provides a 2-year warranty with one of its products which was first sold in 2017. Marin sold $940,900 of products
    12·1 answer
  • For 2016, Gourmet Kitchen Products reported $22 million of sales and $19 million of operating costs (including depreciation). Th
    9·1 answer
  • How to calculate direct labor
    13·1 answer
  • What are the five categories of expenditures for which net proceeds from the lottery can be used?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!