1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lutik1710 [3]
3 years ago
6

The Howe Co. stockholders equity account follows: Common stock (400,00 shares at $4par) $1,600,000 Paid in capital in excess in

par 1,000,000 Retained earnings 1,900,000 Total stockholders equity $4,500,000 The earnings available for common stockholdes from this periods operations are $100,000,which have been included as part of the $1,9 million retained earnings. A. what is the maximun dividend per share that the firm can pay?(assume that legal capital includes all paid-in-capital) B. If the firm has $160,000 in cash, what is the largst per-share dividend it can pay without borrowing? C. Indicate the accounts and changes,if any,that will result if the firm pays the dividends indicated in parts A and B? D. Indicate the effects of an $80,000 cash dividend on stockholders equity.
Business
1 answer:
Anika [276]3 years ago
5 0

Answer:

Explanation:

The computations are shown below:

A. Dividend per share:

= (Total retained earning) ÷ (number of shares)

= ($1,900,000) ÷ (400,000 shares)

= $4.75 per share

B. Largest per share:

= (Cash) ÷ (number of shares)

= ($160,000) ÷ (400,000 shares)

= $0.40 per share

C. In part A, the cash and retained earnings is decreased by $1,900,000

whereas in part B, the cash and retained earnings is decreased by $160,000

D. The retained earning which is a part of stockholder equity is decreased by $80,000

You might be interested in
A product-focused process is commonly used to produce "A. high-volume, high-variety products" "B.low-volume, high-variety produc
ki77a [65]

Answer: Option C  

                                                                       

Explanation: In simple words, product focused process refers to the processes that focuses on producing the batch of similar products. These processes are usually used to manufacture products like paper rolls and light bulbs.

Under this process large units are produced of a similar product. Such processes require high fixed cost and low variable cost.

From the above we can conclude that the correct option is C.

8 0
3 years ago
Bedekar, Inc., has an issue of preferred stock outstanding that pays a $3.40 dividend every year in perpetuity. If this issue cu
Ainat [17]

Answer:

i=4.84%

Explanation:

the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:

Value=\frac{1}{i-k}

where value is the current stock price, i is the dividend yield and k is the growth rate, so applying to this particular case we have

k=3.4/91

k=3.74%

and solving i for the previous formula:

91=\frac{1}{i-0.0374}

0.01098={i-0.0374}

i=4.84\%

8 0
3 years ago
Which one of the following regarding the State Disability Insurance (SDI) program is true?
solmaris [256]

Answer:

B) The State Disability Insurance (SDI) program benefits received for a period of disability are not taxable as income, but benefits received for time off under the Paid Family Leave program are federally taxable as income.

Explanation:

Disability insurance benefits are not reported for tax purposes with one exception. If a person are receiving unemployment insurance benefits,

become unable to work due to a disability, and begin receiving disability insurance benefits, your disability insurance benefits are considered a substitution for your unemployment insurance benefits,  and will then be reported for tax purposes.

If disability insurance benefits are reported, a notice will accompany the first benefit payment sent to you advising  that the benefits are being reported to the Internal Revenue Service.  The employment development department will provide you with a 1099G tax form in January showing the reported amounts paid and forward a copy to the Internal Revenue Service.

Paid family leave benefits are reported for federal purposes but not state tax purposes.

Paid family leave benefits are not taxable or reported to the California State Franchise Tax Board.

4 0
3 years ago
Assume the price of gasoline doubles tonight and remains at that price the next two years. The price elasticity of demand for ga
enyata [817]

Answer:

The correct answer is letter "D": more inelastic.

Explanation:

When its price changes, the supply, and demand for an inelastic good or service are not dramatically impacted. Whether the price of an inelastic product goes up or down, the buying habits of consumers remain roughly the same. <em>Prescription drugs, food, clothing, </em>and <em>gasoline</em> are common examples of inelastic goods.

Thus, <em>if the price of gasoline doubles tonight, that price would be considered more inelastic tomorrow compared to the current price until today than comparing the doubled price during the course of the upcoming two years</em>.

6 0
4 years ago
What was ireland's greatest export during the 1840s?
Viefleur [7K]
People was the greatest export
8 0
3 years ago
Read 2 more answers
Other questions:
  • The pricing strategy used by companies manufacturing or selling designer apparel custom jewelry and exclusive paintings is refer
    6·1 answer
  • Which organization provides leadership for the federal reserve system? board of governors congress department of the treasury fe
    5·1 answer
  • Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following informat
    6·1 answer
  • During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 R
    8·1 answer
  • Rex's doughnuts can produce only 100 doughnuts a day. the variable cost incurred per unit is $2 and fixed costs incurred per day
    14·1 answer
  • Choose an example of a company you could start, and decide which business structure would make the most sense for that type of c
    15·1 answer
  • On January 1, 2018, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $
    7·1 answer
  • What information does a supply schedule provide?
    10·1 answer
  • Information about a property that has a significant bearing on a buyer's decision to purchase that property is referred to as a
    11·1 answer
  • A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a monthly payment of $1,773.40. After making two m
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!