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3 years ago

Chicago Company reported the following information at the end of the current year

Business

1 answer:

Nookie1986 [14]3 years ago

5 0

Answer:

37,000 common stock outstanding

preferred stock dividends = $82,000 x 10% = $8,200

Case A The preferred stock is noncumulative, the total amount of dividends is $32.000

dividends distributed to preferred stockholders = $8,200
dividends distributed to common stockholders = $32,000 - $8,200 = $23,800

since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.

Case B The preferred stock is cumulative, the total amount of dividends is $24,600

dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
dividends distributed to common stockholders = $0

Case C The pretend stock is cumulative, the total amount of all dividends is $90,200

dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
dividends distributed to common stockholders = $90,200 - $24,600 = $65,600

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The price the seller receives for the product after the tax is imposed on the buyer is $2. Seller pay tax from new eq price to the old one.

Explanation:

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2 years ago

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makkiz [27]

Answer:

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Explanation:

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3 years ago

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines

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Answer:

Adjusted cash balance is $ 60,224.

Explanation:

Detailed steps of solution are below

6 0

3 years ago

Consider the following three stocks. (a) Stock A is expected to provide a dividend of $10 a share forever. (b) Stock B is expect

Archy [21]

Answer:

The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).

Explanation:

to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.

Let r be the discount rate which is 10%.

The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.

The price of this stock can be calculated as,

Price or P0 = Dividend / r

P0 = 10 / 0.1 = $100

The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.

P0 = D1 / r - g

Where,

D1 is the dividend for the next period
r is the cost of equity or discount rate
g is the growth rate in dividends

P0 = 5 / (0.1 - 0.04)

P0 = $83.33

The price of this stock can be calculated using the present of dividends.

P0 = 5 / (1+0.1) + 5 * (1+0.2) / (1+0.1)^2 + 5 * (1+0.2)^2 / (1+0.1)^3 +

5 * (1+0.2)^3 / (1+0.1)^4 + 5 * (1+0.2)^4 / (1+0.1)^5 + 5 * (1+0.2)^5 / (1+0.1)^6

P0 = $34.28

3 0

3 years ago

Ivanhoe company purchased machinery with a list price of $88000. They were given a 7% discount by the manufacturer. They paid $4

cestrela7 [59]

Answer:

A) $6194

Explanation:

Price before discount = $88,000

discount rate = 7%

Amount of discount = 7% *$88,000 = $6,160

Price after discount = Price before discount - Amount of discount

= $88,000 - $6,160

Price after discount = $81,840 (this is the price included in depreciation)

Items included in total cost of machinery;

Price of machinery after discount = $81,840

Shipping cost = $400

Sales tax = $4,700

Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940

Depreciation per year = (Total cost of the machinery - salvage value) / useful life

= (86,940 - 25,000)/ 10

= 61,940/10

= 6,194

Therefore annual depreciation = $6,194

8 0

3 years ago