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marishachu [46]
3 years ago
9

Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders

for 2018 and 2019 if total dividends are $9,000 in 2018 and $45,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "O" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) Northern's 2018 dividend would be divided between preferred and common stockholders in this manner: 9000 Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders 8800 (9000) Dividend to common stockholders
Business
1 answer:
dolphi86 [110]3 years ago
5 0

Answer:

The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.  

Paid-In Capital:

Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding : $220,000

Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding : 760,000

total dividends distributed:

2018: $9,000

2019: $45,000

preferred dividends = $220,000 x 5% = $11,000

Distributed dividends:

2018:

$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.

2019:

$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.

$32,000 in dividends distributed to common stockholders, $0.084 per common stock.

Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.

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In a fairly large portfolio, the ...................... risk associated with one stock typically has no impact on the portfolio
Yanka [14]

Answer:

Unsystematic; unsystematic

Explanation:

In the case of the large portfolio, the non-systematic risk that could be attached would have no effect on the total risk of the portfolio

So it is to be expected that the impact should be of non-systematic risk on different kind of stock that could be offset each other in order to remove out the risk to the investor that occurs from the sources of the risk

8 0
3 years ago
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res
dimaraw [331]

Answer:

Nominal interest rate =  12.23%

Explanation:

Given - Aerotron Electronics has just bought a used delivery truck for

            $15,000. The small business paid $1,000 down and financed the  

             rest, with the agreement to pay nothing for the entire first year and  

             then to pay $526.83 at the end of each month over years 2, 3, and

             4 (first payment is in 13th month).

To find - a. What nominal interest rate is Aerotron paying on the loan.

Proof -

As given ,

Price - $15,000

Down Payment - $1,000

⇒Loan Payment = $15,000 - $1,000

As given,

He will not pay for the entire first year. After that he will pay $526.83 for next 3 years.

Now,

Interest rate for 1 month = r %

So,

Loan after 1 year = 14,000( 1 + r)¹²

And

Annuity factor = \frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }

and t = 3 years = 36 months

Now,

As we know,

Monthly loan payment = \frac{Loan amount}{Annuity factor}

⇒$526.83 = 14,000( 1 + r)¹² / \frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }

By solving we get

r = 1.019%

Now,

Nominal interest rate = 1.019%×12 = 12.23%

7 0
3 years ago
A manufacturing company has annual sales of $180,000 and inventory of $40,000. The inventory turnover ratio for the company is _
NISA [10]

Answer:

4.5

Explanation:

Inventory refers to the goods that a company has in its stock. Inventory includes raw materials and finished goods sold by the company.

Inventory turnover refers to the number of times a company sells and replaces its inventory during a given period.

Annual sales of a manufacturing company =\$180,000

Inventory =\$40,000

Inventory turnover ratio for the company = Sales/Inventory

=\frac{180,000}{40,000} =4.5

6 0
2 years ago
why might a mutual fund be a better investment than individual stock and bonds a mutual fund guarantees dividends be stocks are
borishaifa [10]

Answer:

The correct answer would be option C, The risk is diversified with a mutual Fund.

Explanation:

Mutual funds is a pool of funds from different people. This pool of fund is invested in different securities. These securities can be stocks, bonds, treasury bills, etc. In this way the risk is diversified. When you invest money with the money of other people, the pool of money or funds will minimize the risk associated with investing a single person's money in any security. Secondly, the mutual funds are managed by professionals who are expert in the field of managing funds. They better know when and how much funds to liquidate and at what time.

7 0
3 years ago
Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that freque
algol13

Price ceiling are measure employed by government to help the consumers by mandating a maximum price that the seller must charge for a product or service.

  • The measure of imposing price in market are rare but are notably used during natural disasters.

  • Price ceiling helps to prevent the producers from exploiting the consumers.

In conclusion, the major disadvantage of price ceiling is that when a price ceiling is set below the equilibrium price, the quantity demanded will exceed quantity supplied, thus, this will result to excess demand of goods and shortage in the market.

Learn more about Price ceiling here

<em>brainly.com/question/8868002</em>

7 0
3 years ago
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