Answer:
$8,000
Explanation:
The computation of the amount of dividend received by the preferred shareholders in year 2 is shown below:
Annual preferred dividend = Par value of preferred stock × Dividend rate on preferred stock
= 200,000 × 4%
= $8,000
By multiplying the par value with the dividend rate we can get the amount of dividend received and the same is shown above
Answer: Option B
Explanation: Capital budgeting refers to the process in which an analyst tries to evaluate whether a long term investment will be profitable for the organisation or not.
In the capital budgeting process, only the quantitative aspects of a project will be taken into consideration and qualitative aspects such as quality and work space safety are not considered.
Hence from the above we can conclude that the right option is B.
Answer:
Scubapro Corporation
The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:
E) 8,000 shares.
Explanation:
Data and Calculations:
Outstanding common stock = 500,000
Planned issue of additional shares = 200,000
Proportion of new issue to outstanding = 0.40 (200,000/500,000)
For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.
<span>Mullin, inc, purchases supplies such as paper, and seat covers directly from manufacturers and then sells them to other firms. mullin, inc. is a (n) wholesaler.
Distribution of goods or things to specific customer types is </span>wholesaling. Wholesaler is a person, company or firm who buys from various producers, a large quantity of goods and then resells to retailers. There are also some types of wholesalers.
Answer: Option (C) is correct.
Explanation:
Constant returns to scale production function: When there is an increase in inputs (i.e capital and labor) as a result output increases by the same proportion.
For example: If the amounts of equipment and workers are both doubled in the production of bread then as a result the output of bread also doubled.
Suppose the capital and labor increases by 10% then as a result output also increases by 10%.
