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anyanavicka [17]
3 years ago
10

Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 4,000 shares of​ $

100 par​ value, 4​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2014 and 2015. What amount of dividends must the company declare in 2016 for the common stockholders to receive a dividend of​ $1?
A.$ 48 comma 000$48,000
B.$ 16 comma 000$16,000
C.$ 64 comma 000$64,000
D.$ 32 comma 000
Business
1 answer:
Ivenika [448]3 years ago
5 0

Answer:

A. $48 comma 000 $48,000

Explanation:

The total dividend to be declared in 2016 = Preference dividend outstanding + common stock holder dividend.

Burkert company has not declared any preference dividend in 2014 and 2015. The preference dividends are cumulative and the company has to pay prior years dividends also. The annual preference dividend amounts $16,000 (4,000 shares * $100 par value * 4% preferred stock)

The cumulative preference dividend for 3 years 2014, 2015 and 2016 will be $16,000 * 3 years = $48,000

The common stock dividend that a company must declare in order for every shareholder to receive atleast $1 is $50,000.

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Solution:

1 : The interest rate that fits the lifetime cash flows to the PV of cash flows is expected here.  

PV of an equation of perpetuity:

PV = C/ r

$326,000 = $3,000 / r

With the interest rate, we could now solve the following:

r= $3,000 / $326,000

r= 0.0092 or 0.92% per month

2 :The interest rate per month is 0.92 percent.  

In order to calculate the APR, the number of months in a year is determined by:

APR = (12) 0.92%

APR = 11.04%

3 : And using the equation to find the EAR, we find:

EAR = [1 + (APR / m)]m– 1

EAR = [1 + 0.0092]12– 1

EAR = 0.1162 or 11.62%

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Fox brothers enterprises, inc., agreed to convey to canfield a lot, lot 23, in a subdivision known as fox estates, together with
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3 years ago
Which statement is true about the reliability of secondary data while conducting market research? Economic data about less devel
Debora [2.8K]

The answer is,  Reliability of data is affected by the tax structures prevailing in countries.

<h3>What is market research with example?</h3>
  • When a business has a limited budget or there has already been a lot of market research done on a given issue, they frequently use this type of study.
  • Making note of the most recent data published on a certain topic after conducting an online search on it is an example of market research.

<h3>What is the main purpose of market research?</h3>
  • Sell research is the process of acquiring information about target consumers and demographics to help a firm market itself more successfully and, ultimately, succeed in the market.
  • No matter whether a company is B2B or B2C, large or small, new or established, market research is an essential component of every business plan.

<h3>How does market research help a business?</h3>
  • An efficient instrument for your business strategy is market research.
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2 years ago
What are the main factors that affect the amount of business competition?
aliina [53]

Answer:

From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location. Each factor hinges on the availability or attractiveness of substitutes and, when no alternatives exist and the company is a single seller of a unique product, a monopoly exists and there is zero competition.

Explanation:

  • When a company has a unique product that no other company is selling, a monopoly exists, as there is no competition.
  • Most markets are somewhere in between competition and a monopoly.
  • The amount of competition will also vary depending on location, the barriers to entry, and the availability of pricing information.

Alternatively, a product might be completely differentiated, meaning that it is unique. If so, there might be few alternatives and thus low levels of competition. The level of differentiation is largely a subjective matter and subject to consumer opinion.

The number of sellers also impacts competition. If there are many sellers of an undifferentiated product, competition is considered to be high. If there are few sellers, competition is low. If there is a single seller, the market is considered a monopoly.

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V125BC [204]

Answer:

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FEM is a tool used by Central bank to adjust currency flows to offset the international exchange of funds thereby effecting balance of payment equilibrium.

Explanation:

Foreign exchange management is  a protective measure against the adverse impact of unanticipated changes in exchange rates. It is at the core of International Finance.

The central bank liaises with the International Monetary Fund, World Bank and other financial bodies to hedge against these unanticipated changes as a way of stabilizing exchange rates.

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