Answer:
A) privately held corporation.
Explanation:
In the given example, the most appropriate option is a privately held corporation as the stock is owned by the 13 principles. It is not offered to anyone other than these 13 principles, which means they do not offered to the public at large.
It is different from the publicly held corporation as the shares or the stock of the business organization are offered to the general public. But in this case, it offered to only 13 principles
Hence, other options are wrong except A
To solve:
Percentage of preferred stock outstanding = 5.5%
Price per share = $48
Price of preferred stock = (.055 x $100)/$48
Price of preferred stock = .1146
To turn into a percentage:
% = (.1146)(100)
11.46%
Answer:
They are exempt from paying tax
Explanation:
Taxable income is the amount of an individual's gross income that the government deems subject to taxes.
However, because they are aged (above 65), and their taxable income -which should be $32000 after deductions - is less than the percentage tax relief,they are exempted from paying tax for that particular year.
Answer:
ROI 87.5%
Explanation:
Return on Investment = return /investment
Total return
50,000 perating income + 20,000 residual income = 70,000 income
The asset could been adquire on lease or through liabilities, this is not investment. The investmetn made is the one done by the shareholders.
Stock Holders equity = investment = 80,000
The shareholders invest this amount to generate
70,000 dollars of return
ROI 70,000/80,000 = 87.5%
Answer:
Cash used for financing activities 356,000
Explanation:
extinguish of bonds payable (375,000)
preferred dividends (31,000)
proceeds from TS 50,000
Cash used for financing activities 356,000
The conversion do nt involve cash, so it is not included in the cash flow statement.
The carrying ammount, gain and losses are not relevant for the cash flow statement.
We have to focus in the cash movements only.