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andreev551 [17]
3 years ago
9

Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outsta

nding. Retained earnings, $238,000. On January 1, 2019, the board of directors was considering the distribution of a $63,800 cash dividend. No dividends were paid during 2017 and 2018. Required: Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: The preferred stock is noncumulative. The preferred stock is cumulative. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock
Business
1 answer:
Vlad [161]3 years ago
7 0

Answer:

<h2>a. The Preferred stock is noncumulative.</h2>

Preferred stock

= 7,710 * 17.5 * 8%

= $‭10,794‬

Per share

= 10,794/7,710

= $1.40

Common Shareholders.

= 63,800 - 10,794

= $‭53,006‬

Per share

= ‭53,006‬/49,000

= $1.08

<h2>b. Preferred stock is cumulative. </h2>

This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.

Preferred stock

= 7,710 * 3 years (2017,2018,2019)

= $‭23,130‬

Per share = 23,130/7,710

= $3

Common stock

= 63,800 - 23,130

= $‭40,670‬

Per share

= 40,670/49,000

= $0.83

c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?

b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.

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Bob has a $50,000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also h
4vir4ik [10]

Answer:

Combined Beta =  1

Combined return = 10%

Explanation:

given data

stock portfolio = $50,000

beta = 1.2

expected return = 10.8%

beta = 0.8

expected return = 9.2%

standard deviation = 25%

to find out

combination

solution

we get here first Combined Beta that is express as

Combined Beta = 1.2 × 50% + 0.8 × 50%

Combined Beta =  1

and

Combined return will be here

Combined return = 10.8 × 50% + 9.2 × 50%

Combined return = 10%

5 0
3 years ago
Direct Materials Variances Bellingham Company produces a product that requires nine standard pounds per unit. The standard price
Amanda [17]

Answer:

The correct answer is:

(a) -7783

(b) 6800

(c) -983

Explanation:

According to the given values in the question:

(a)

The price variance will be:

= (8.5-8.93)\times 18100

= -0.43\times 18100

= -7783 (Favorable)

(b)

The quantity variance will be:

= (2100\times 9-18100)\times 8.5

= (18900-18100)\times 8.5

= 800\times 8.5

= 6800 (Unfavorable)

(c)

The cost variance will be:

= (2100\times 9\times 8.5)-(18100\times 8.93)

= (160650)-(161633)

= -983 (Favorable)

4 0
2 years ago
Cindy earned a 10 percent increase in her salary and received the entire increase at the beginning of the year, with the stipula
sammy [17]

Answer:

Lump-sum salary increase.

Explanation:

A lump-sum salary increase is an amount paid instead of increase in salary. It is not added to the fixed base salary, it is instead given in the form of a single cash payment, as it is the case with Cindy here. This is why it is also known as lump sum bonus, because it is given as a single payment, as it was in Cindy’s case, all given at the beginning of the year.

7 0
3 years ago
3) mario's home systems has sales of $2840, costs of goods sold of $2180, inventory of $508, and accounts receivable of $432. ho
Novay_Z [31]

84.84 days take Mario's to sell its inventory.

<h3>What is meant by Inventory?</h3>

All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory.

The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities.

Data given in the question:

Sales = $2,880

costs of goods sold = $2,220

Inventory = $51

Accounts receivable = $436

Now,

Time taken to sell inventory = 365 ÷ ( Inventory Turnover Ratio )

also,

Inventory Turnover Ratio = [ Cost of goods sold ] ÷ [ Average inventory ]

= $2,220 ÷ $516

= 4.3023

Therefore,

Time taken to sell inventory = 365 ÷ 4.3023

= 84.84 days

To learn more about Inventory refer to:

brainly.com/question/24868116

#SPJ4

6 0
2 years ago
9. The demand curve is a representation of the relationship between the quantity of a product demanded and:
TiliK225 [7]

Answer:

the price of the product demanded

7 0
3 years ago
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