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3 years ago

When a corporation has both common stock and preferred stock outstanding:

Business

1 answer:

fredd [130]3 years ago

7 0

Answer:

D. dividends on preferred stock must be paid before dividends on common stock can be paid.

Explanation:

While distributing the dividend to the shareholders we give the first preference to the preference shareholder then the remaining dividend is distributed to the equity shareholders.

As the distribution of dividend is not compulsory but whenever the company earns a profit during a particular year it will distribute the dividend according to their investment amount

Hence, d option is right

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__________ is the amount a business earns after deducting what it spends for salaries and other expenses.

Lana71 [14]

Answer:

profit

Explanation:

profit is a financial return or reward that an entrepreneur aims to achieve to reflect the risk it takes. Profit is also an important signal to other providers of finance to a business. Banks, suppliers and other lenders are more likely to provide finance to a business that can demonstrate that it makes a profit and that it can pay debts as they fall due.

4 0

3 years ago

Ken, a transaction broker, worked with both the buyer and seller in the sale of a home. The sale went well and it closed on time

vovangra [49]

Ken, the agent, violated the law of agency
In this particular instance, when Ken told the the buyer that the seller would take a lower price than what was on the listing in order to close the sale faster and then told the buyer exactly which price they should offer, Ken, who is the agent, has now violated the law of agency

6 0

3 years ago

You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.

olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

= (8,000*$1,060) + (310,000*$57) + (15,000*$72)

= $8,480,000 + $17,670,000 + $1,080,000

= $27,230,000

weight of debt = debt/total finance

= $8,480,000/$27,230,000

= 0.31

weight on equity = equity/total finace

= $1.080.000/$27,230,000

= 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0

3 years ago

The annual depreciation taken on a vehicle totals $4,400. The vehicle has been in service for three full years and the adjusting

KonstantinChe [14]

Answer:

Depreciation expense = $4,400

Accumulated depreciation = $13,200

Explanation:

Depreciation: The depreciation is the amount which decreases the value of the asset. It can be by obsolescence, usage, tear and wear, etc.

The annual depreciation is given i.e. $4,400 which will be charged in depreciation expense whereas the accumulated depreciation would be equal to

= Annual Depreciation × useful life

= $4,400 × 3

= $13,200

5 0

3 years ago

Which of the statements is the best

Galina-37 [17]

Answer:

Cash over flow ~AU ( ;

Explanation:

4 0

3 years ago