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Lena [83]
3 years ago
11

Preferred stock is like long-term debt in that ___________. A. it promises to pay to its holder a fixed stream of income each ye

ar B. it gives the holder voting power regarding the firm's management C. the preferred dividend is a tax-deductible expense for the firm D. in the event of bankruptcy preferred stock has equal status with debt
Business
1 answer:
AlekseyPX3 years ago
5 0

Answer:

A. it promises to pay to its holder a fixed stream of income each year.

Explanation:

In Business, stock can be defined as having an equity or ownership by an individual in an organization. Generally, stocks are of two (2) types and these are;

1. Common stock.

2. Preferred stock.

Preferred stock refers to the securities which represents an individual's ownership or share in an organization and having a fixed claim over common stocks in earnings and assets.

Also, the preferred stock pay a fixed amount of interest regularly rather than being paid as a dividend only.

Hence, preferred stock is like long-term debt in that it promises to pay to its holder a fixed stream of income each year. This simply means that, the preferred stockholders are given more priority than the holders of common stocks. Therefore, in the event of liquidation of a firm the preferred stockholder can claim the assets belonging to a the firm.

There are four (4) types of preferred stocks and these are;

1. Perpetual preferred stock.

2. Exchangeable preferred stock.

3. Convertible preferred stock.

4. Cumulative preferred stock.

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Can we get negative cost of equity? and what does it represent?
Dovator [93]
Yes u can get negative cost of equity
8 0
3 years ago
Read 2 more answers
The Clark Sports Camp operates three sports programs: basketball, lacrosse and field hockey. The camp provides a unique opportun
igor_vitrenko [27]

Answer:

1. <u>Impact on profits</u>:

Contribution Margin =                     $63,000

Less: Traceable Rent = $10,000

Less: Salary of Director = $10,000

Total avoidable fixed expenses = <u>$20,000</u>

Decrease in Profits =                      <u>$43,000</u>

Hence, the profits will reduce by $43,000 if the basketball program is eliminated.

3. If the allocated fixed costs can be reduced by $50,000. The program should be dropped since there will be an increase in profits by $7,000 (50,000 - 43,000). The avoidable costs and revenues should be taken into account for the purpose of this decision. If the avoidable costs are more than the revenues, the line should be dropped else not.

Hence, since after considering the reduction in allocated fixed costs, the avoidable costs are greater than revenues, the program should be dropped

5 0
3 years ago
I need help ASAP A B C OR D!!!!
Gelneren [198K]
It’s D, marketing research
8 0
2 years ago
In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?
Kazeer [188]

Answer:

B, Italy

Explanation:

In Italy, 60 percent of the shares of a public company are owned by the 3 largest shareholders. This invariably means that the decision making of public companies are mostly at the mercy of just 3 persons as against larger numbers in other countries.

Cheers

5 0
3 years ago
On July 1, SHady resort borrowed 350,000 cash by signing a 10-year, 8.5 % installment note requiring equal payments each June 30
Nadusha1986 [10]

Answer:

$29,750

Explanation:

Since the Annual Payments of $53,343 are all equal for the period of 10 years at 8.5% installment note, therefore we Simple interest formula here to calculate the interest amount;

I = Prt

P = Principal Amount = $350,000

r = Interest Rate = 8.5%

t = time = 10-year

I = Interest = 350,000 x 0.085 x 10  = 297,500

Hence, the first annual payment of interest expense will be:

= 297,500 / 10 = $29,750

3 0
3 years ago
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