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REY [17]
3 years ago
14

Kate also wishes to pay dividends on both her common shares and the preferred stock. She is a little confused between cash and s

tock dividends. Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock-holder of the common stock, what would be the effect of issuing a 10 percent stock dividend
Business
1 answer:
11111nata11111 [884]3 years ago
5 0

Find the answers in the explanation below

Explanation:

Cash dividend: Cash dividend is dividend that is paid in cash to shareholders in the event that the company or firm does not need the money for any kind of operation. This means that the company is giving economic value to its shareholders. This transfer of economic value to shareholder means that the shares price of the company will drop. An example is a company having a share dividend of 5%. That means that the price of the company shares will fall by 5%.

Stock dividend: Stock dividend unlike cash dividend is increase stock dividend as well as help stockholders to avoid tax. This subsequently does not increase the value of the company. For example, if stock dividend of a company is 5% and as much as 1 million shares, when stock dividends are declared the stockholder gets extra of 50,000 shares. The stock holder can either keep the shares or sell it to create his own

Cheers

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In many casinos, a person buys chips to use for gambling. Within the walls of the casino, these chips can often be used to buy f
Ber [7]

Answer:

As long as you remain within the casino's walls, chips fit the definition of currency; that is, they serve as a means of exchange, an account unit, and a value store. Once you leave the casino, chips don't work very well as money but many kinds of money don't work well in other places.

It's hard, for example, to spend money from Turkey or Brazil on your local supermarket or the movie theatre.

6 0
3 years ago
Depreciation SchedulesDunn Corporation acquired a newr depreciable asset for $135,000. Theasset has a 5-year expected life and a
Scilla [17]

Answer with explanation:

Part 1. Straight-line depreciation can be calculated using the following formula:

Straight-line depreciation = (Cost of Asset - Residual Value) / Useful Life

Now by putting the values of each parameter, we have:

Straight-line depreciation = ($135,000 - Zero) / 5years = $27,000

So this depreciation will be charged to the asset to remainder of its life.

Part 2. We can calculate depreciation using double declining balance method whose formula is as under:

Double Declining Balance Depreciation = 2 X Cost of the asset/Useful Life

By putting values, we have:

Double Declining Balance Depreciation = 2 * $135,000 / 5 Years = $54,000

The depreciation would be charged each year unless it fells below the salvage value of the asset, which in this question is given and is zero.

Part 3.

Following are the main questions that we must consider before opting to any depreciation method:

  1. Does the cost of the asset chosen is accurate and in-accordance to International Financial Reporting Standards.
  2. Does the estimated Residual value of the asset is forecasted accurately. International accounting standard IAS 16 says that the scrap value must be discounted and its present value must be considered as a scrap value.
  3. Is the useful life of the asset estimated is in-accordance to the pace of technological advances?
  4. The asset's fair value must be considered each year to analyze whether or not the asset value in the market is aligned with our carrying value calculated or not.

So these were the factors which decides which method of depreciation must be opted or what estimate changes are required in calculating the fair value of the asset.

7 0
3 years ago
The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indica
Alexus [3.1K]

Answer:

C

Explanation:

Greater than 0.8 but less than or equal to 0.9

8 0
3 years ago
Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing
iVinArrow [24]

Answer:

$120

Explanation:

Given:

• Geometric growth rate of existing financial security:

$4 to $8 to $16 to $32 to $64 to $128

• Arithmetic growth rate of underlying assests:

$4 to $6 to $8 to $10 to $12 to $14

From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.

We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:

Price of underlying assests when decreased by $6 =

$14-$6 = $8.

Therefore, price of existing financial security decline wil be:

$128-$8 = $120

6 0
3 years ago
Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.
mariarad [96]

Answer:

1. Jay BradFord invested $40,000 cash in the company, as its sole owner.

Account                     Debit          Credit

Cash                          $40,000

Capital                                          $40,000

2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.

Account                     Debit          Credit

Wage Expense         $3,050

Wages Payable                           $3,050

3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.

Account                     Debit          Credit

Prepaid Rent             $24,000

Cash                                              $24,000

4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.

Account                                Debit          Credit

Furniture and Equipment   $30,000

Cash                                                        $10,000

Accounts Payable                                  $10,000

5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.

Account                                Debit          Credit

Prepaid Insurance               $1,800

Cash                                                        $1,800

6. Purchased basic office supplies for $420 cash.

Account                                Debit          Credit

Office supplies                    $420

Cash                                                         $420

7. Purchased more office supplies for $1,500 on account.

Account                                Debit          Credit

Supplies                               $1,500

Accounts Payable                                   $1,500

8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.

Account                                Debit          Credit

Revenue                                                  $20,000

Cash                                     $8,000

Accounts Receivable          $12,000

9. Paid $400 to suppliers for accounts payable due.

Account                                Debit          Credit

Accounts Payable                $400

Cash                                                         $400

10. Received $3,000 from customers in payment of accounts receivable.

Account                                Debit          Credit

Accounts Receivable                              $3,000

Cash                                     $3,000

11. Received utility bills in the amount of $380, to be paid next month.    

Account                                Debit          Credit

Utility Expense                    $380

Accounts Payable                                   $380

12. Paid the monthly salaries of the two employees, totaling $6,100.

Account                     Debit          Credit

Wage Expense                            $3,050

Wages Payable         $3,050

6 0
3 years ago
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