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3 years ago

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

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3 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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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:

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Explanation:

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So, this explains the answer.

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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:

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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