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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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Answer:

a) Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.

Explanation:

Outsourcing likely to be the best solution to the firm's data processing needs because Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.

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3 years ago
Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the followin
fiasKO [112]

Complete Question:

Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the following medical expenses.

Drugs and medicines prescribed by doctors $300

Health insurance premiums $750

Doctors' fees $2,250

Eyeglasses $75

How much medical expense can he deduct as itemized deduction?

Answer:

Jon

Medical expense that Jon can deduct as itemized deduction:

= $375

Explanation:

a) Data and Calculations:

Adjusted gross income = $40,000

Incurred medical expenses:

Drugs and medicines prescribed by doctors $300

Health insurance premiums $750

Doctors' fees $2,250

Eyeglasses $75

Total  = $3,375

Under Tax Cuts and Jobs Act (TCJA), the medical expenses which can be deducted as an itemized deduction on the federal income tax return are only to the extent that they exceed 7.5% of adjusted gross income (AGI).

7.5% of $40,000 = $3,000

Therefore, Jon can itemize deduction of $375 in medical expense.

7 0
3 years ago
A cross-functional team has been formed to come up with ways to improve communication among departments. team members are now ta
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They are in the "collecting information" stage of planning.

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2 years ago
Working as a team to design a skyscraper would most satisfy which of these personal benefits of work?
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7 0
3 years ago
Read 2 more answers
The owner of an orange grove must decide when to pick one variety of oranges. She can sell them for $27 a bushel if she sells th
uysha [10]

Answer:

The oranges should be picked in 2 weeks for maximum return

Explanation:

We assume that the return of the owner is y ($)

Assume that the number of weeks the oranges should be picked to have maximum return is x (weeks). (x≥0)

If collect now, the price for each bushel is $27

As the price per bushel decrease by $1.50 per bushel each week

=> After x weeks, the price of a bushel decrease: 1.5x ($)

=> The price of 1 bushel after x weeks is: 27 - 1.5x ($)

If collect now, each tree can yield 7 bushels

As the yield increases by half a bushel per week for the next 5 weeks

=> After x weeks with x ≤ 5, each trees would yields: 7 + 0.5x (bushels)

The return = The price of each bushes × The quantity of bushels

=> y = (27-1.5x)(7+0.5x)

⇔y= 27 (7 +0.5x) - 1.5x(7+0.5x) = 189 + 13.5x - 10.5x - 0.75x^{2}

⇔y = -0.75x^{2} +3x +189

We have: if the equation has the form of y =ax^{2} +bx +c with a≠0, its maximum value is: max y = c - \frac{b^{2} }{4a}

In the equation y = -0.75x^{2} +3x +189, we have: a = -0.75; b = 3; c = 189

=> max y = c -\frac{b^{2} }{4a} = 189 - \frac{3^{2} }{4.(-0.75)} = 189 - \frac{9}{-3}  = 189 - (-3) = 189+3 = 192

To look for the number of weeks, we should find x (0≤x≤5) with which y = 192

192 = -0.75x^{2} +3x +189

⇔-0.75x^{2} + 3x + 189 - 192 = 0

⇔-0.75 x^{2} + 3x - 3 =0

⇔-0.75x^{2}  + 4*0.75x - 0.75*4 =0

⇔x^{2} -4x + 4 = 0

⇔ (x-2)^{2}  = 0

⇔ x = 2

The oranges should be picked in 2 weeks for maximum return

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