A preferred stock from Hecla Mining Co. (HLPRB) pays $3.10 in annual dividends. If the required rate of return on the preferred
2 answers:
Answer:
present value of stock = $41.89
Explanation:
given data
annual dividends = $3.10
rate of return = 7.4 percent
solution
we get here fair present value of stock that is express as
present value of stock = Annual dividends ÷ Required return ....................1
put here value and we get
present value of stock =
solve it and we get
present value of stock = $41.89
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Briar Co. disposed of a $6,000 piece of equipment on December 31 with $4,500 in accrued depreciation as of that date. Then $1,500 will be debited from the Loss on Equipment Disposal account.
<h3>What is loss on Equipment Disposal account?</h3>Gain/Loss on Asset Disposal is a common account name of the Equipment Disposal account.
The net difference between the initial asset cost and any cumulative depreciation (if any) is debited to the disposal account, while the balances in the fixed asset account and the accumulated depreciation are reversed.
On December 31, the debited amount is calculated as:
Therefore, $1,500 will be the amount of loss on disposal of the Equipment.
Learn more about the depreciation, refer to:
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