Answer:
total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000
since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.
year
2015: $20,000 distributed to preferred stockholders
- $0.25 per preferred stock
- $0 to common stockholders
2016: $28,000 distributed to preferred stockholders
- $0.35 per preferred stock
- $0 to common stockholders
2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders
- $0.375 per preferred stock
- $0.85 per common stock
2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders
- $0.375 per preferred stock
- $1.60 per common stock
Dividends paid during the 4 year period:
Preferred stockholders received $108,000 in total
- $1.35 per preferred stock
Common stockholders received $490,000 in total
Answer:
False
Explanation:
Exchange rate helps to determine the value of money in the foreign currency. If the exchange rate changes from 1.8 to 1.5 francs per dollar it means that the franc per dollar appreciates, and the dollar depreciates. Now, more dollars can be bought by trading Swiss franc compared to the previous rate. A decrease in exchange rate decreases the value of the dollar compared to the Swiss franc.
Answer:
All the 4 statements are correct.
Explanation:
The International Accounting Standard on Currency changes says that the all the assets and liabilities of the subsidiary must be reported at market value of the asset both at the end of the year and at the time of sale of asset & payment of liability. So this means that the statement a and d are correct statements because the translation gain or loss is reported by using the spot rate which is the market value of the asset in the parent company's currency. Similarly, the statement b and c are correct because at the time of sale of subsidiary assets we are actually recognizing the remeasurement gain or loss by using the spot rate, which is the market value of the asset in the parent company's currency.
Answer:
Overall operating profit will decrease by $25,000
Price is $32.5
Explanation:
A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.
In a shut down decision , the following relevant cash flows should be considered:
1. Lost contribution from the product to be shut down
2. Savings in fixed directly attributable to the product under consideration.
$
Lost contribution from products 2
(15-10)× 20,000 (100,000)
Savings in direct fixed cos <u> 75,000</u>
Net loss from the drop of product 2 <u> (25,000)</u>
Overall operating profit will decrease by $25,000
Mark up is the proportion of cost as profit
Price = cost + (mark-up %× cost
Price = 25 + (30%× 25) = 32.5
Price is $32.5
The answer is strategic decision making. This is also
referred as strategic planning in which a group of people or an individual
engage into making or creating the goals or objectives that the organization
would want to achieve or tackle in a way of providing altering strategies and
to obtain the goal that they aim for.
