Answer:
33.3%
Explanation:
Cost of one common stock =$12
Cost of 5 common stock = $60
Price of preferred stock = $75, which is more than $60
Hence, it would not make sense to convert the preferred stock shared into common stock as of now.
Now, if P is $20, then price of 5 stocks:
= 5 × 20
= $100
Hence, the Preferred stock price must increase to at least $100 otherwise there will be arbitrage opportunity.
Increase in price:
= price of 5 stocks - Price of preferred stock
= $100 - $75
= $25
% increase = (Increase in price ÷ Price of preferred stock) × 100
= (25 ÷ 75) × 100
= 33.3%
Answer:
See below
Explanation:
Gaddis Advertising Services
Statement of owner's equity.
For the year ended, December 31, 20Y3
Zack Gaddis, capital January 1, 20Y3
$186,000
Additional investment
$9,300
Net income
$89,800
Withdrawals
($65,100)
Balance
$34,000
Zack Gaddis capital , December 31, 20Y3
$186,000 + $34,000
$220,000
Answer:
efficiency variance
Explanation:
When standard direct labor hours differ from actual direct labor hours used, the company experienced an "efficiency varaiance". It can be used in order to analyze how effective an operation is in relation to labor, materials, machine time and other production factors.
Efficiency variance is actually the difference which exists between the theoretical amount of inputs which are needed to produce an output and the actual number of inputs which are required to manufacture the unit of output.
Depending on your state, it can go towards county taxes (e.g. Fire Protection, School Maint. Op.) Or it can go to state for transportation and other funds.
Answer:
Answer is given below.
Explanation:
Preferred stock yield = dividend/ stock price
a) dividend =$1.81 , stock price =$30
Preferred stock yield = $1.81/$30= 6.033%
b) dividend =$1.81 , stock price =$25
Preferred stock yield = $1.81/$25=7.24 %