Answer: A. The return on plan assets is higher than expected
Explanation:
Pension gains related to plan assets is said to occur when the return on plan assets is higher than expected. In a situation whereby an individual or a firm expect a certain return on an asset and when the asset's return was eventually more than the expected return on it, this means that there is a pension gains related to plan assets.
Answer:
Amount after 8 years is Rs. 23803.12
Explanation:
The amount received in two years = Rs 15000
It is given that the amount received in two years is invested for six years that earns the interest rate of 8% per year. Now, we have to find the total amount after eight years. Here, in the first two years, there is no interest rate earned. So only six years will be used to count the interest rate.
Amount after 8 years = Present value (1 + r)^n
Amount after 8 years = 15000 (1 + 8%)^6
Amount after 8 years = 15000 (1 + 0.08)^6
Amount after 8 years = 23803.12
Answer:
The dividend allocated between preferred and common stockholders is $147,420 and $49,580 respectively
Explanation:
We know that the total dividend amount declares is $197,000 out of which first preference stockholders will get the dividend and afterwards equity stockholders will give.
The computation of the preference stockholders dividend is shown below:
= Number of shares × dividend rate × per share value
= 13,000 shares × 14% × $81
= $147,420
And, the total dividend declared is $197,000
So, for the common stockholders, the dividend would be
= $197,000 - $147,420
= $49,580
All other information which is given is not relevant. Hence, ignored it