Absolute
Explanation:
Pure risk is call absolute risk because it is a category that is beyond human control.
Answer:
Option (B) is correct.
Explanation:
Given that,
Net income = 50,000
Preferred dividend = 2,000
Outstanding common stock:
= (40,000 × 2) + (10,000 × 6/12 × 2)
= 80,000 + 10,000
= 90,000
2016 basic earnings per share:
= (Net income - Preferred dividend) ÷ Outstanding common stock
= (50,000 - 2,000) ÷ 90,000
= 48,000 ÷ 90,000
= $0.53 per share
Therefore, the 2016 basic earnings per share is $0.53.
Answer:
e. $6,000 preferred; $0 common.
Explanation:
The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.
Note also that Cumulative Preference Stock can have their dividends accumulated and paid in the latter years when funds become available.
Amount of Preference Stock dividend is fixed and calculated as follows:
9,450 shares × $10 × 5% = $ 4,725
2015
Cash dividends = $0
Preference Stock dividend Paid = $0
Preference Stock dividend Arrears = $ 4,725
No Common Stock Dividend
2016
Cash dividends = $6,000
Preference Stock dividend Paid = $6,000
Preference Stock dividend Arrears = $ 3,450
No Common Stock Dividend
Answer:
This is very simple, they should start billing their clients right away.
You don't have to bill your clients for the full legal expenses, but they for sure need to start making some money.
It is very normal that new businesses don't get enough revenue to cover their operation expenses right away. Even for big corporations, like Amazon and FB, it may take years to reach the break even point.
When you open a business you have to keep some money as reserve to cover some expenses for at least a few months.
<span>Cross-sell is the practice of selling or suggesting related or complementary products to a prospect or customer. Cross selling is one of the easiest and most effective methods of marketing.</span>
