Answer:
$84,000
Explanation:
preference share dividend is at 5% on $100 par value. The number of preference shares is 12,000 shares ( non cumulative)
The year 2017 preference share dividend pay out is 5% of 100 multiplied by 12,000 = $60,000
Deduct $ 60,000 from $144,000 dividend declared in 2017 , the balance is common stockholders dividend.
144,000 minus 60,000 = $84,000
Non cumulative preference shares dividend are paid first for the year the company declares dividend. The dividend is not cumulative ( prior years dividend for which company did not declare dividend are forfeited).
The common stockholders are paid dividend after preference shares dividend are paid. The common stockholders bears the full risk of the business as seen above. In event of liquidation, they are the last to be settled from realised asset of the bankrupt company.
It guarantees profits, the risk is reduced but the barrier to entry is higher in the form of a high price.
Answer: What kind of exam is it? Study as long as you can if its flashcards or practice problems.
Explanation:
This is the best way to study
Answer:
The correct answer is letter "A": decisions under risk.
Explanation:
Decision making under risk involves selecting choices where there are several options and the probabilities of success for each option are known by the decision-maker. The choice with the highest probability is the one likely to be selected. The decision is made based on past experiences, outstanding information about the choices, or the individual point of view.
<span>meowner’s policy, installing smoke detectors helps to avoid risk. create risk. reduce risk. </span>
