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Fantom [35]
3 years ago
13

Rachel's Designs has 1,000 shares of 6%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining

shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $10,000 in 2021. How much of the $10,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders?
Business
1 answer:
Damm [24]3 years ago
4 0

Answer:

In 2021, preferred stockholders will be paid $9000 dividends while common stockholders will be paid $1000 in dividends.

Explanation:

The preferred share are cumulative which means that they accrue dividends in case the company is unable to pay dividend in a certain year. This means that the company needs to pay the preferred dividend in future whenever it declares dividends if it has not paid the dividend on preferred share in the previous years.

The preferred dividends are paid prior to the common stockholders.

Thus, the dividend for 2019 and 2020 will be paid along with that of 2021 when the company pays dividends in 2021.

The preferred dividend per year is = 50 * 0.06 * 1000 = $3000

The accrued preferred dividends for 2019 and 2020 are = 3000 * 2 = 6000

Preferred dividend to be paid in 2021 = 6000 + 3000 = $9000

Common stock dividends to be paid in 2021 = 10000 - 9000 = $1000

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Answer: The company lack a good labour- management relationship

Explanation:

Training can be defined as the effort made on the part of management to provide their employees with the basic skills needed to enable their employees becomes a better workers on the job for which the organization had employed them to do in the organization. A worker that is properly trained at all levels in the organization is important to the organization for the continued success and survival of the organization. So that the organization can meet the challenge of business and technological change.it is equally important to the individual workers from the point of view of job satisfaction and increased in their earnings. However, training programme must be developed to follow the following steps

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(c) Implement training programmes in the most appropriate manner.

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However, evaluation of the employees after the training programme to test the impact of the training on the employees is very important. But this does not point to the fact that the training would bring about an improvement in the performance of the employees immediately. In fact, employees requires at least three to six months after a training programme had been organized for them by the management before the management can begin to see the result of the training on the performance of the workers on their job. The reasons why the employees are sceptical about the company motives is that the company lack a good labour - management relationship. In a well planned training programme employees would show their interest and enthusiasm about the effort of the management aimed at training them on the job to become a better worker .

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MissTica
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Pad 2 = folded 2 times
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