Answer:
B. 100 shares of ABC preferred stock
Explanation:
Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.
Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.
Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.
In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.
So the person with 100 preference shares will have 100 preference shares
10% of par value of $100 is 0.1 * 100= $10
Number of shares are 100 so the value is now 100 * $10 = $1,000
Since the conversion rate of preference to ordinary shares is 10:1
Number of preference shares= 1,000 ÷ 10= 100 preference shares
Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
Answer: $51,400
Explanation:
Credits to Accounts Receivable represent a reduction in the Accounts receivable amount.
The formula for Closing balance is:
Closing balance = Opening balance + Credit sales - Credits to accounts receivable
Making Credit sales the subject will make the formula:
Credit sales = Credits to account receivable + Closing balance - opening balance
= 56,800 + 17,000 - 22,400
= $51,400
Answer:
$21.9275
Explanation:
The cost of online banking is $39.99
The cost of checks books is $17.95 per 100. The cost associated with 25 checks
= $17.25/100 x 25
=0.1725 x 25
=$4.3125
The cost of a stamp is 50 cents, which is $0.50
for 25 checks
=$0.50 x 25
=$12.5
The writing fee
=$0.05 x 25
=$1.25
Total cost of using checks
= $4.3125 + $12.5 +$1.25
=$18.0625
the difference between online banking and checks
= $39.99 - $18.0625
=$21.9275
