All categories

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.

You might be interested in

Taxes on the purchase of specific items such as gasoline, cigarettes, or alcoholic beverages are called _____ taxes.

marishachu [46]

Answer:

Taxes on the purchase of specific items such as gasoline, cigarettes, or alcoholic beverages are called excise taxes.

7 0

2 years ago

The term ____________________ refers to a market exchange that affects a third party who is outside or external to the exchange.

Flauer [41]

Answer: B. spillover

Explanation:

A Spillover is used to refer to the effects of an Externality which is what happens when a market exchange leads to effects on a third party that was not party to a transaction between the contracting parties.

The activities that result from the transaction spillover to the third party and can be either negative or positive. A negative spillover would be countries in Africa getting harsher global warming effects due to companies in china polluting the atmosphere.

5 0

3 years ago

Kenneth, the CEO of Dewberry Inc., is very particular about establishing and maintaining good interpersonal relations with his e

qaws [65]

Answer:

Need for Achievement.

Explanation:

David McClelland and his colleagues developed the Needs / Achievement Motivation Theory theory of McClelland.

The theory suggests that three needs; Need for Power, Success and Affiliation-affect human actions.

The desire to succeed, to perform in comparison to a set of norms, to strive to achieve greatness is the need for achievement.

5 0

3 years ago

A monopolist can sell 26,000 units at a price of $30 per unit. lowering price by $1 raises the quantity demanded by 1,000 units.

Nutka1998 [239]

If he sells the shares at 30 per unit, the equation would be:
30*26000=780000

If he lowers the price to 29 per unit and ups the demand by 1k, it would be:
29*27000=783000

The resulting change would net him an additional 3000 dollars, so your answer would be B.

7 0

3 years ago

When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10. you compute the price of jeans relative

WARRIOR [948]

So, the dollar price of the jeans is the nominal variable, and the relative price is the real variable. The relative price of the jeans have been adjusted to inflation. The dollar price hasn't been adjusted for inflation, hence why it is the nominal variable (not adjusted for inflation).

5 0

3 years ago