Answer:
Dividend paid = (5%× 10,000 × $10) = $5000.
Explanation:
<em>Preference shares entitles the holders to participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>
It can be cumulative and non-accumulate.
Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>
Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>
Dividend in Year 1
Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000
Dividend in Year 2
Dividend paid = (5%× 10,000 × $10) = $5000.
Note that the unpaid dividend of $1,000 in year 1 is lost forever
Answer:
Explanation:
2/10 , n/30 is a credit term arrangement where the seller agrees with the buyer that if payments are made within 10 days after purchase , he will enjoy a 2% discount or otherwise pay the full invoice amount at 30 days.
As Jepson paid on the 18th of the same month which is 9 days after purchase , he is entitled to 2% discount on the sales.
<u>Journal Entry</u>
September 8
Credit Sales - $9,600
Debit receivable = $9,600
September 18
Debit Cash - $9,408
Debit sales discount - $ 192
Credit receivable - $9,600
Answer:
Realistic aspect
Explanation:
Considering the scenario described in the question it can be concluded that Cosmo shifted his focus onto which REALISTIC aspect of goal-setting theory.
This is because following Cosmo making his dream come true of buying the property that his restaurant occupies, the idea that he could rent out the storefront next to the restaurant for added income is a REALISTIC Aspect of Goal Getting.
This implies that Cosmo is more realistic in terms of his financial abilities and willingness to work toward the goal of paying off the mortgage loan
Answer:
current intrinsic value per stock = $26.35
Explanation:
year dividend EPS
0 0 $18
1 0 $20.88
2 0 $24.22
3 0 $28.10
4 0 $32.59
5 0 $37.81
6 $12.59 $41.97
growth rate up to year 5 = 16%
ROE growth rate starting year 6 = 11%
dividend growth rate starting year 6 = 11% x (1 - 30%) = 7.7%
cost of equity = 24%
horizon value at year 5 = $12.59 / (24% - 7.7%) = $77.24
current intrinsic value per stock = $77.24 / 1.24%⁵ = $26.35
