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mote1985 [20]
3 years ago
7

Since 70 percent of preferred dividends received by a corporation is excluded from taxable income, the component cost of equity

for a company which pays half of its earnings out as common dividends and half as preferred dividends should, theoretically, be
Cost of equity = rs(0.30)(0.50) + rps(1 - T)(0.70)(0.50).
a.True
b.False
Business
1 answer:
dusya [7]3 years ago
3 0

Answer:

The answer is False

Explanation:

Since the 70 percent of preferred dividends received by a company is excluded from taxable income, the component cost of equity for a corporation which pays half of its revenue out as a common dividends and half as preferred dividends should ,technically be.

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Which most accurately describes the difference between common stock and preferred stock?
maxonik [38]
Common stock is a corporate owned equity. Common stock shareholders have a right to the company's assets after all bondholders, preferred stock/shareholders and other debt holders are paid first and in full. Preferred stock has the owner entity to a fixed amount of money. Those that are preferred shareholders/stockholders receive money before any common stock holders do. They have a higher claim on assets and company earnings. 
6 0
3 years ago
Read 2 more answers
A firm can effectively use its operations function to yield competitive advantage through all of the following except
ira [324]

Answer:

The correct answer is b.setting equipment utilization goals below industry average.

Explanation:

A firm cannot achieve competitive advantage by setting its equipment utilization goals as this will not retain its customers.

If a firm wants to achieve competitive advantage it can achieve it by;

Addressing its customers concerns and customizes the products according to their needs.  

Providing customers their ordered products earlier than other companies lead time, which means increase in speed of delivery and shortens the delivery time.

Bring improvement and advancements in its products by using new technology.

Maintain a variety of different product options to cater the needs of its various customers. Offering them a wide range of products will probably reduce chances of customer switch.

4 0
3 years ago
A kitchen fire at a favorite restaurant caused the owner to temporarily close. This is an example of which of the following risk
Ipatiy [6.2K]

Answer:

Uncertainty-based risk

Explanation:

The restaurant was temporarily closed because of fire, which is an uncertainty.

3 0
3 years ago
One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by
Anton [14]

Answer:

Using predetermined totals to control posting routines.

Explanation:

A validation methods to avoid errors is the batch total control, that verificate the transcription errors and transportation errors.

Validations aims to make sure that data is sensible, reasonable, complete and  within acceptable boundaries.

The batch total checks that something is not missing by adding together a number field in different records and checking the total. For example, if an invoice has three items costing 1,2 and 3, the control will look for a batch total of 6.

8 0
3 years ago
Sheffield Corp. uses the periodic inventory system. For the current month, the beginning inventory consisted of 488 units that c
swat32

Answer:

$80,544

Explanation:

We will calculate the amount of cost of goods sold using FIFO as;

= (Beginning inventory unit × Cost of each inventory) + [(Units sold during the month - Beginning inventory units) × Unit cost of the first purchases made by the company]

= (488 × $65) + [(1,206 units - 488 units) × $68]

= $31,720 + $48,824

= $80,544

Therefore, the cost of goods sold using FIFO is $80,544

4 0
3 years ago
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