1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
e-lub [12.9K]
3 years ago
15

Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. Al

l remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? Cumlative Non Cumlativepreferred Dividends for 2018 preferred Dividends in arrears for 2017 Remaining Dividends to common stockholders Total Dividens:
Business
1 answer:
pochemuha3 years ago
3 0

Answer:

1.

Preferred stock dividends to be paid in 2018 = $20000

Common stock dividends to be paid in 2018 = $2000

2.

Preferred stock dividends to be paid in 2018 = $10000

Common stock dividends to be paid in 2018 =  $12000

Explanation:

The preferred stock dividends are always paid before the common stock dividends.

Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.

Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.

1.

If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.

Preferred stock dividend per year = 2000 * 100 * 0.05  

Preferred stock dividend per year = $10000

Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000

Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000

2.

If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.

Preferred stock dividend per year = 2000 * 100 * 0.05  

Preferred stock dividend per year = $10000

Preferred stock dividends to be paid in 2018 = $10000

Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000

You might be interested in
Present value of dividends: Fresno Corp. is a fast-growing company whose management expects it to grow at a rate of 30 percent o
klasskru [66]

Answer:

Explanation:

Dividends through year 1 to 5:

D1 = 2.15*(1+0.30)^1 = 2.80

D2 = 2.15*(1+0.30)^2 = 3.63

D3 = 2.15*(1+0.30)^2 * (1+0.18)^1 = 4.29

D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58

D5 = 2.15*(1+0.30)^2 * (1+0.18)^3 = 12.86

PV (D1) = 2.80

PV (D2) = 3.63 *PVIF = 3.63 * 0.87719 = 3.19

PV (D3) = 4.29 * 0.76947 = 3.30

PV (D4) = 8.58 * 0.67497 = 5.79

PV (D5) = 12.86 * 0.59208 = 7.62

Total of all PV's = 22.69

4 0
3 years ago
QUESTION THREE
sveta [45]

From the amount of capital that the graduates had, the firms economic depreciation would be $10000

<h3>How to solve for the economic depreciation of the firm</h3>

Original cost of the capital - market value of capital after a year

= $30000 - $20000

= $10000

<h3>How to solve for the partnership costs</h3>

This is the Cost of capital plus cost of office space and cost of interest =  $44,520

<h3>How to solve for economic profit</h3>

Total revenue - partnership cost

100000 - 44520

= $55,480

Read more on economic depreciation here: brainly.com/question/14552090

#SPJ1

4 0
2 years ago
Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following
mixas84 [53]

Answer:

Part a

Ultimate Audio Company

<u>Sales Budget </u>

<u>For the Month Ending June 30</u>

Product and Area         Unit Sales Volume  Unit Selling Price  Total Sales

Model U500 :

Northeast Region             140,000                       $45               $6,300,000

Southwest Region            160,000                       $45               $7,200,000

Total                                                                                            $13,500,000

Model U500 :

Northeast Region            100,000                       $80               $8,000,000

Southwest Region           125,000                       $80              $10,000,000

Total                                                                                           $18,000,000

Total Revenue from Sales                                                        $31,500,000

Part b

Ultimate Audio Company

<u>Production Budget </u>

<u>For the Month Ending June 30</u>

                                                                   Model U500     Model S1000

Expected Units to be Sold                           300,000             225,000

Add Desired Closing Inventory                      30,000                15,000

Total                                                               330,000             240,000

Less Desired Opening Inventory                  (25,000)              (10,000)

Total Production                                            305,000            230,000

Explanation:

<em>Note : I have attached the complete question as images below !</em>

A Sales Budget shows the Total Expected Revenue from sale of budgeted units.

     Total Revenue = Total Expected Units Sales x Selling Price Per Unit

A Production Budget shows the number of units to be produced to meet the Sales and Inventory targets

     Total Production = Expected Sales + Desired Closing Inventory - Desired Opening Inventory

5 0
3 years ago
A 15-year, annual coupon bond is priced at $984.56. The bond has a $1,000 face value and a yield to maturity of 6.5 percent. Wha
Bess [88]

Answer:

6.35%

Explanation:

you can use the yield to maturity formula to determine the coupon:

YTM = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

0.065 = {coupon + [(1,000 - 984.56) / 15]} / [(1,000 + 984.56) / 2]

0.065 = {coupon + 1.029} / 992.28

64.4982 = coupon + 1.029

coupon = 63.47

coupon rate = 63.47 / 1,000 = 0.06347 = 6.35%

3 0
2 years ago
What money management skills?
VLD [36.1K]

Answer:

Money management skills are the abilities to control your spending and money and be able to prepare for the future.

Explanation:

by preparing for the future, I mean saving up your money while still using enough so you have food and clothes and other necessities. and by being able to control it, I mean not spending your money on useless things like a box chicken or fancy luxurious scissors.

5 0
2 years ago
Other questions:
  • Planning is a key management function because other management functions depend on having a good plan.
    10·1 answer
  • The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value w
    14·1 answer
  • The term bench marking as relates to the hotel industry refers to A-line by line analysis's of the operating statement comparing
    15·1 answer
  • For your business to be successful you will need a strategy for beating the competition, that is, a ________.
    12·1 answer
  • The following information applies to Caroline, who is single, for 2017:
    6·1 answer
  • Determine the amount to post to the Cash T-account. Event Debit/Credit Purchase equipment by signing a note with the bank for $2
    5·1 answer
  • The 6-month futures price on a non-dividend-paying stock is $36.20. the risk-free rate is 2.75 percent and the market rate is 9.
    5·1 answer
  • What are the 3 Levels of Management?:​
    15·1 answer
  • Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items wit
    13·1 answer
  • Did you receive less than 21 weeks of an unemployment insurance benefit payment for weeks between march 15, 2020, and june 26, 2
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!