Answer:
Dr Cash 800,100
Cr Preferred stock 622,300
Cr Additional paid in capital, preferred stock 177,800
Explanation:
Preferred stocks and common stocks are part of stockholders' equity. Whenever they are sold above par value, the difference must be recorded as additional paid in capital. You must also specify which stocks were sold at a higher value.
Answer:
$47.81
Explanation:
Value after year 8 = (D8*Growth rate) / (Required return-Growth rate)
Value after year 8 = ($9.57*1.06) / (0.14-0.06)
Value after year 8 = $10.1442 / 0.08
Value after year 8 = $126.8025
Current share price = Future dividend and value*Present value of discounting factor(rate%,time period)
Current share price = $9.57/(1.14)^8 + $126.8025/(1.14)^8
Current share price = $3.35485015 + $44.4517646
Current share price= $47.81
Salary relationships usually have behaviors that can be expressed through mathematical equations, for this case we must locate the information they give us, according to which the salary of the movie star
is equal to a fixed basic remuneration
plus a percentage
of the gross income
, that is:
With this equation and the data they give us, we can solve the request so
:
![\boldsymbol{1)} \; 32 = b + 100x\\\boldsymbol{2)} \; 24 = b + 60x](https://tex.z-dn.net/?f=%5Cboldsymbol%7B1%29%7D%20%5C%3B%2032%20%3D%20b%20%2B%20100x%5C%5C%5Cboldsymbol%7B2%29%7D%20%5C%3B%2024%20%3D%20b%20%2B%2060x)
We clear the basic remuneration
from the second equation and replace in the first:
![\boldsymbol{2)} \; 24 = b + 60x\\24-60x = b\\\boldsymbol{1)} \; 32 = b + 100x\\32 = (24-60x) + 100x\\32-24=100x-60x\\8=40x\\\frac{8}{40} =x\\\boldsymbol{x=0,2}\\b=24-60x\\b=24-60(0,2)\\b=24-12\\\boldsymbol{b=12}](https://tex.z-dn.net/?f=%5Cboldsymbol%7B2%29%7D%20%5C%3B%2024%20%3D%20b%20%2B%2060x%5C%5C24-60x%20%3D%20b%5C%5C%5Cboldsymbol%7B1%29%7D%20%5C%3B%2032%20%3D%20b%20%2B%20100x%5C%5C32%20%3D%20%2824-60x%29%20%2B%20100x%5C%5C32-24%3D100x-60x%5C%5C8%3D40x%5C%5C%5Cfrac%7B8%7D%7B40%7D%20%3Dx%5C%5C%5Cboldsymbol%7Bx%3D0%2C2%7D%5C%5Cb%3D24-60x%5C%5Cb%3D24-60%280%2C2%29%5C%5Cb%3D24-12%5C%5C%5Cboldsymbol%7Bb%3D12%7D)
Thus, with the fixed basic remuneration and the percentage of gross income calculated, we can estimate how much the following film should obtain so that the movie star obtains at least
millions salary:
![40 = g (0.2) +12\\40-12 = g (0.2)\\\frac{28}{0.2y} = g\\\boldsymbol{g = 140}](https://tex.z-dn.net/?f=40%20%3D%20g%20%280.2%29%20%2B12%5C%5C40-12%20%3D%20g%20%280.2%29%5C%5C%5Cfrac%7B28%7D%7B0.2y%7D%20%3D%20g%5C%5C%5Cboldsymbol%7Bg%20%3D%20140%7D)
Answer
The <em>minimum amount</em> of gross income that the next film should generate is
<em>millions</em>