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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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On their birthdays employees at a large company are permitted to take a 60-minute answer
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Answer:

Full question: <em>On their birthdays, employees at a large company are permitted to take a 60-minute lunch break instead of the usual 30 minutes. Data were obtained from 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday. The company wishes to investigate whether these data provide convincing evidence that the mean time is greater than 60 minutes. Of the following, which information would NOT be expected to be a part of the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance?</em>

<em>Answe</em><em>r: Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes. </em>

Explanation:

<em>From the given question let us recall the following statements:</em>

<em>Employees at a large company are permitted to take a 60-minute Lunch break instead of the  30 minutes.</em>

<em>Data was gotten from = 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday</em>

<em>Given that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.</em>

<em>The company tries to investigate the data to know that the mean is greater than 60 minutes</em>

<em>the next step is to find the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance</em>

<em>Therefore,</em>

<em>Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes. </em>

<em>Or</em>

<em>The P-value> 0.05</em>

<em>The mean time is not greater than 60 minutes</em>

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