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Artist 52 [7]
3 years ago
6

Pike Corporation has total stockholders' equity of $8,690,000 as of December 31, 2017. The company has 300,000 shares of $2 par

value common stock and 20,000 shares of 8% cumulative preferred stock, $100 par value, outstanding. Due to lower-than-expected net income, no dividends were declared by Pike's board of directors for 2017. The book value per share of common stock is:
a $25.00
b $21.77.
c. $23.00
d $25.60.
Business
2 answers:
mrs_skeptik [129]3 years ago
6 0

Answer:

$22

Explanation:

Book value per share of common stock=$8,690,000-(20,000*100)-(20,000*100*8%)/300,000

=$8,690,000-$2,000,000-$160,000/300,000

=$22

levacccp [35]3 years ago
4 0

Answer:

Option B is correct.

<u>$21.77</u>

Explanation:

Equity available to common Stockholders = Total Stockholders' Equity - Preferred Stock value - Arrears of dividend to Preferred Stockholders

= $8,690,000 - (20,000*$100) - (20,000*$8) = $6,530,000

Book Value per share of Common stock = Equity available to common Stockholders / Outstanding shares of Common stock  

Book Value per share of common stock = $6,530,000 / 300000 = $21.77

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The economy is experiencing a recession combined with inflation. the self-correction school would say the proper response is to_
Alisiya [41]

The economy is experiencing a recession combined with inflation. The self-corrected school would say the proper response is to <u>do nothing</u>.

The first aspect that happens at some point in a recession is the financial system slows down. This means that businesses are producing less, and consumer spending is down. This will cause layoffs, as corporations try to cut costs. during this time, there's a significant decline in the demand for items and offerings.

Inflation is the rate of increase in costs over a given period of time. Inflation is normally an extensive measure, along with the general boom in costs or the increase in the value of residing in a country.

Inflation is a measure of the rate of rising costs of goods and services in a financial system. Inflation can occur whilst fees rise due to increases in production expenses, which includes raw substances and wages. A surge in demand for services and products can reason inflation as purchasers are willing to pay more for the product.

Learn more about recession here brainly.com/question/20597683

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8 0
2 years ago
When you ask the controller to look into federal reimbursements to see if he can find the cause of the reduction, how might he r
Ratling [72]

Answer:

Federal reimbursements are not part of the revenue cycle, the problem lies in revenue.

The problem lies in revenue so its possible that charges are not being generated.

Explanation:

Federal reimbursements are not revenue. These reimbursements are treated separately other than revenue. The charges are not generated because federal funds are not part of revenue cycle.

7 0
3 years ago
A company allowed its employees to take a half hour lunch break. However, the break was uncompensated, and the employees were no
hoa [83]

Answer:

FLSA rules establish that only short coffee breaks (between 5 to 20 minutes) should be compensated as work time. Meal periods that last at least 30 minutes are not compensable work time.

If maintenance workers are recalled earlier, that time counts as work time because they are performing their normal work tasks.  

8 0
4 years ago
Family Furniture Corporation incurred the following costs. Identify the costs as variable, fixed, or mixed. 1. Wood used in the
Paraphin [41]

Answer:

Explanation:

1. Wood used in the production of furniture is a variable cost

2. Fuel used in delivery trucks is  variable cost

3. Straight Line depreciation on factory building is a Fixed cost

4. Screws used in production is a Variable cost

5. Sales staff Salaries is a Fixed cost

6.Sales commissions Variable

7.Property taxes Fixed

8. Insurance on buildings Fixed

9. Hourly wages of Furniture is Variable

10. Salaries of factory supervisrors is Fixed cost

11. Utillities is Mixed  cost

12. Telephone bill is a Mixed  cost

8 0
3 years ago
Preissle Company, wants to sell some 20-year, annual interest, $1,000 par value bonds. Its stock sells for $42 per share, and ea
NikAS [45]

Answer:

coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.

Explanation:

warrant per share = 2*75 = $150

price of the bond = 1000 - 150 - (1000/(1.05^40))

                             = $707.9543177

coupon*(1 -(1/(1.05^40)))/0.05 = 707.9543177

coupon*17.15908635 = 707.9543177

coupon = 41.25827583

coupon rate = 8.25%

Therefore, coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.

6 0
3 years ago
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