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pav-90 [236]
3 years ago
5

Evergreen Building, Inc. has declared a $40,000 cash dividend to shareholders. The company has 5,000 shares of $20-par, 6% prefe

rred stock and 10,000 shares of $15-par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $12,000 in arrears?
Business
1 answer:
FromTheMoon [43]3 years ago
8 0

Answer:

Preferred dividends = $16500

Common dividends = $23500

Explanation:

given data

cash dividend = $40,000

share 5000 = $20 par

preferred stock = 6%

share = 10000

common stock = $15

preferred stock = $12,000

to find out

preferred and common stockholders

solution

Preferred stock dividends = 5000 × $15 × 6%

Preferred stock dividends = $4500

and

Preferred dividends = $4500 + $12000

Preferred dividends = $16500

and

Common dividends = $40,000 - $16500

Common dividends = $23500

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Flauer [41]

Answer:

2%

2.5%

1.67%

Explanation:

The yield can be computed using the yield formula which coupon payment divided by price.

The coupon payment=face value*coupon rate

face value is $1000

coupon rate is 2%

coupon payment=2%*$1000=$20

when price is $1000:

yield =$20/$1000=2%

when price is $800

yield=$20/$800=2.5%

when price is $1,200

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In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20

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Ronch [10]

Answer:

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Explanation:

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Although, if you are pc, you can upload a custom gamerpic easily.

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Dye Trucking raised $85 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye
ivanzaharov [21]

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