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elena-s [515]
3 years ago
12

A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The f

irm also has 5,000 shares of common stock outstanding. If the stock is cumulative and the board of directors has passed the preferred dividend for the prior two years, how much must the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year?
Business
1 answer:
katen-ka-za [31]3 years ago
6 0

Answer:

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

Explanation:

The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]

The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]

The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year

= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend

= [$8,000 x 2 Years] + $8,000

= $16,000 + 8,000

= $24,000

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

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Anna35 [415]

Answer:

Explanation:

a) actual cost method:-

=deductions × percentage

= 345 + 205 + 85% (2800 + 275 + 180 + 1890 +3600 +4125 )

=550 + 10939.5

=11489.5 = 11490

Note :- fines are not taken.

b) automatic mileage method:-

=total number of business miles × standard rate

=32200×0.58 +345+205

=19226

5 0
3 years ago
Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are h
-BARSIC- [3]

Answer:

a. a smaller increase in the marginal product of labor. 

Explanation:

The law of diminishing returns to physical capital states that as more and more input are added to fixed factors of production, output increases at a decreasing rate.

For there to be output growth, physical capital should be increased less than human capital and technological progress.

I hope my answer helps you

6 0
3 years ago
Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h
denis-greek [22]

Answer: Appreciate

Explanation:

When a country increases interest rates, it will lead to an appreciation in currency. This is because there will be more demand for the currency of the country because people will want to take advantage of the higher interest rates and make a gain.

As the demand for the currency increases but the supply stays the same, the value of the currency will appreciate.

With Australia taking up their interest rates, their dollar will appreciate in value.

5 0
3 years ago
Major Manuscripts, Inc.
Lisa [10]

Answer:

Projected total assets = <u>$10,318 </u>

Projected retained earnings = <u>$4,675.30 </u>

Additional new debt required = <u>$537.70</u>

Explanation:

external financing needed = EFN = [(total assets/total sales) x ($ Δ sales)] - [(total current liabilities/total sales) x ($ Δ sales)] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]

total assets = $9,380, projected total assets = $9,380 x 1.1 = $10,318

total sales = $7,800

$ Δ sales = $780

current liabilities = $1,550

profit margin = net income / sales = $410 / $7,800 = 0.052564

forecasted sales = $7,800 x 1.1 = $8,580

dividends payout ratio = dividends / net income = $187 / $410 = 0.4561

EFN = [($9,380/$7,800) x ($780)] - [($1,550/$7,800) x ($780)] - [0.052564 x $8,580 x (1 - 0.4561)]

EFN = $938 - $155 - $245.30 = $537.70

projected retained earnings = current retained earnings - projected net income - projected dividends = $4,430 + $451 - $205.70 = $4,675.30

6 0
3 years ago
How does soap work? A. Creates a sheetlike microscopic barrier between the skin and microorganisms in the environment B. Emulsif
Elina [12.6K]

Answer:

Your answer is going to be c.

Explanation:

as soap is meant to wash away germs it has to first kill them.

4 0
3 years ago
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