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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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A local partnership is liquidating and is currently reporting the following capital balances: LO 15-1 LO 15-1 LO 15-3 LO 15-3 Ba

notsponge [240]

Answer:

Barley received $29,000 and carter received $23,000.

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular Barley ($) Carter ($) Desai ($) Total($)

Opening balance 44,000 32,000 -24,000

Desai indicated loss in ratio(50:30=5:3)-15,000 -9,000 24,000

Balance Remaining 29,000 23,000 0 52,000

Cash distribution of $52,000 -29,000 -23,000 0 -52,000

Balance 0 0 0 0

According to the analysis, Barley received $29,000 and carter received $23,000.

6 0

3 years ago

Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is

Mila [183]

Answer:

For 2019, the maximum amount that any individual can elect for salary deferral treatment on a 401k distribution is the lesser between: 100% of their salary or $19,000.

in this case, Amber earns much more than $19,000, so the lesser amount would be $19,000.

If Amber contributes more than $19,000 to her 401k account, then she would have to pay taxes for the extra amount contributed.

3 0

3 years ago

The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:

Alina [70]

Answer:

1. WINFREY TOWING SERVICE

Statement of Comprehensive Income

Service revenue 10,800

Rent expense (550)

Salaries expense (1,900)

Dividends paid (4,000)

Net income 4,350

Statement of Retained Earnings

Retained earnings b/f 3,900

Add: Net income 4,350

Retained earnings c/f 8,250

2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.

Explanation:

In this question, we need to obtain the net income of the company, which is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.

7 0

4 years ago

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment

konstantin123 [22]

Answer:

labor force participation rate= 96.2%

Explanation:

Giving the following information:

Unemployed people= 19 million

Labor force= 500 million

First, we need to calculate the employed people:

Employed population = 500 - 19= 481 million

Now, to calculate the labor force participation rate, we need to use the following formula:

labor force participation rate= (employed people/labor force)*100

labor force participation rate= (481/500)*100

labor force participation rate= 96.2%

4 0

3 years ago

Is the cost of equity calculated from the CAPM model, pre -tax or post-tax?

Natasha_Volkova [10]

The existence of pre-tax cost of debt and post-tax cost of debt is due to the acknoledgement of the tax benefit from issuing debt.There is no tax benefit from paying divdends,so it makes no sense talking about pre-tax,post-tax cost of equity for a firm.When you think about cash flow to equity you can only assume that the taxes owed by the company have already been paid.Now, the taxation over the income of the shareholder is a whole different issue that does not take place in this discussion,since it is not taken in consideration either in cost of equity or cost of debt.

3 0

4 years ago