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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
Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (
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Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100

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Return in percent:

= ( 108.54 - 100 ) ÷ 100

= 8.54%

Therefore, the value-weighted return for the index is 8.54%.

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2 years ago
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8 0
3 years ago
Read 2 more answers
What was the average annual economic growth rate in Singapore over the 22.00 years from 1957 to 1979
borishaifa [10]

The average annual economic growth rate in Singapore over the 22.00 years from 1957 to 1979 was 3.20%.

<h3>What is average annual economic growth rate (AAGR) ?</h3>

The average annualised return of a portfolio, asset, or cash flow over time is known as the average annual growth rate, or AAGR.

The basic arithmetic mean of a set of returns is used to calculate AAGR.

Calculation for average annual economic growth rate:

Real per capita GDP in Singapore in 1957 was about $400 and it doubled to about $800.00 by 1979 over the period of 22 years.

Growth rate = (\frac{last value}{initial value} )^{\frac{1}{n} } -1

The last value = $800

The initial value = $400

n = number of years

Growth rate = (\frac{800}{400} )^{\frac{1}{22} } -1

                   = (2)^{\frac{1}{22} } -1

                   = 1.032 - 1

                   = 0.032

Growth rate % = 0.032×100

                        = 3.2%

Therefore, the growth rate in Singapore over 22 years are 3.2%.

To know more about Gross domestic product (GDP), here

brainly.com/question/1383956

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4 0
1 year ago
After an initial investment of $20,000, Joseph's bank account has earned $16,000 in interest over the last 10 years. At what rat
Daniel [21]

Answer:

what rate is he earning interest

Interest rate is 8%

Explanation:

I = C·i·t,

C Initial Investement

i Anul interest rate

t time

 

16000=20000*i*10

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I=16000/200000

I=0,08

I=8%

6 0
3 years ago
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