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svetoff [14.1K]
3 years ago
5

Cork Inc. declared a $160,000 cash dividend. It currently has 6,000 shares of 7%, $100 par value cumulative preferred stock outs

tanding. It is one year in arrears on its preferred stock. How much cash will Cork distribute to the common stockholders?a. $88,000.
b. $72,000.
c. $124,000.
Business
1 answer:
Ira Lisetskai [31]3 years ago
5 0

Answer:

$124,000 is the correct answer if we use 6% which is the correct question scenario. If we take 7% then its

Explanation:

The cash dividend announced is $160,000. Remember the first payment goes to preferred shareholders and then the amount left would be distributed among the ordinary shareholders.

The dividend share of Preferred shareholders = 6000 shares * $100 par value * 6% fixed rate = $36,000

After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:

Share of Dividend of ordinary shareholders = $160,000 - $36,000

= $124,000

Similarly if we use 7% fixed rate, then

The dividend share of Preferred shareholders = 6000 shares * $100 par value * 7% fixed rate = $42,000

After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:

Share of Dividend of ordinary shareholders = $160,000 - $42,000

= $124,000

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3 years ago
The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
amm1812

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Dynamic pricing

Explanation:

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3 years ago
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Neporo4naja [7]

Answer:

$31 per hour

Explanation:

The predetermined overhead rate is computed as

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Predetermined overhead rate

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2 years ago
The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc
OlgaM077 [116]

Answer:

  1. $25.50
  2. 90,000 units
  3. 140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

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= 0.208

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= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

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Price = -20.20/-0.792

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= (468,000 + 260,000) /5.2

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6 0
3 years ago
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