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Softa [21]
3 years ago
5

Alto Company issued 7% preferred stock with a $100 par value. This means that:

Business
2 answers:
RideAnS [48]3 years ago
7 0

Answer:

Option "C" is the correct answer to the following question.

Explanation:

Given:

Issue price of share = $100

Market price per share = $100

Preferred stock dividend rate = 7%

Computation of dividend per year :

Dividend per year = Issue price of share × Preferred stock dividend rate

Dividend per year = $100 × 7%

Dividend per year = $7

Dividends are always paid to preferred stock at fixed rates at face value.

tiny-mole [99]3 years ago
4 0

Answer: C. The amount of the potential dividend is $7 per year per preferred share.

Explanation:

A Preferred Share gives the holder the right to earn a fixed dividend from a company. The fixed dividend is a percentage of the par value of the Preferred stock and it is stated when issued.

Preferred Stock also receive dividends ahead of Common Shareholders.

In the above question, it is stated that the Preferred Stock was issued at 7% with a par value of $100.

This means that the annual payment expected of this share is,

= 7% * 100

= $7

The amount of the Potential Dividend is $7 per year per preferred share.

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Answer: 9.9

Explanation:

7 0
2 years ago
In a perfectly competitive​ market, all of the following statements are true​ except: A. Marginal revenue is the same as price.
Rashid [163]

Answer: Marginal revenue is equal to price times quantity

Explanation:

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In a perfectly competitive​ market, the marginal revenue is the same as price and the marginal revenue curve is the same as the demand curve facing sellers.

It should be noted that the statement that the marginal revenue is equal to price times quantity is incorrect. The total revenue is equal to price times quantity.

6 0
3 years ago
If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be
Musya8 [376]

Answer:

C. the price effect would become a more significant consideration for each firm that makes automobiles.

Explanation:

The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.

So, this explains the answer.

4 0
3 years ago
An import quota seeks to guarantee domestic industries ______.
lyudmila [28]

Answer:

a. will have access to experts who can decide international trade disputes.

Explanation:

7 0
2 years ago
Lili spent $120 on a new sweater rather than using this money to buy her personal finance textbooks. The cost of doing without t
Serjik [45]

Answer:

opportunity cost

Explanation:

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Here in the question it is mentioned that the Lil spent $120 for purchasing a new sweater instead of buying her finance textbooks also the cost of buying the sweater is known as the non doing textbooks cost

So here it is a opportunity cost

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3 years ago
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