Answer:
Very small or no dividend
Explanation
Dividend is simply the distribution of profit made by company, firm e.t.c to its shareholders. Most startup company do pay little dividend due to the profit outcome but others do not. It is necessary to pay dividend to shareholders as it shows your devotion and commitment to look after and be in one mind with investors.
most companies that are just startups do not pay a dividend mostly during the early stage of growth. The revenue derived from startup is used to grow and develop the company and not to share with shareholders but sharing little is not bad a all.
Investors at Penny's candies have low expectations from the company since it has a very low P/E ratio. Either the company is not performing well or investors have discounted some bad news in future cash flows.
Whereas Donna's confections has a P/E of 6.7 which is much better than that of Penny's. So here the company is performing well and investors are positive on future good news and they expect the cash flows to improve and hence the stock rules at a higher P/E ratio
<span>Out of the prepaid rent of $2800, $700, the actual rent for the month of January, has to be debited to rent account and prepaid rent account will be credited. Now the prepaid rent account will show a smaller figure(2800-700 = 2100) This is the amount that will be shown in the prepaid rent account in the balance sheet. Of course it will be shown as an asset since it has a debit balance.</span>
Answer: C. hope this help!!!!!
Answer:
c. 11.70 percent
Explanation:
The computation of the cost of preferred stock is shown below:
= Annual dividend ÷ Sale price of preferred stock × (1 - flotation cost)
= $9.35 ÷ $85 × (1 - 6%)
= $9.35 ÷ $79.9
= 11.70%
We ignored the marginal tax rate i.e 30%. In the case of preferred stock, the flotation cost would be deducted. We consider all the things that are given in the question