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Ne4ueva [31]
3 years ago
13

Liberty, inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock o

utstanding at december 31, 2014, and december 31, 2015. the board of directors declared and paid a $3,000 dividend in 2014. in 2015, $18,000 of dividends are declared and paid. what are the dividends received by the preferred and common shareholders in 2015?
a. preferred: $5,000 common: $13,000
b. preferred: $7,000 common: $11,000
c. preferred: $11,000 common: $7,000
d. preferred: $9,000 common: $9,000
Business
1 answer:
BabaBlast [244]3 years ago
8 0

Dividend to be paid to Preference shareholders in 2014= No of Preference shares*par value per share*Percentage of Shares

=2500*50*4%

=$5000

Dividends declared duing 2014=$3000, Thus Preference share holders need to be paid $2000 , in 2015, as preference shares are cumulative in nature.

Dividend to pe paid to Preference shareholders in 2015= $5000+$2000

=$7000.

Dividend to be paid to common share holders= $18000-$7000

=$11000

Thus B will be the answer.

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For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance l
MrMuchimi

Answer:

a. The annual lease payment for Situation 1 is $12,774.47.

b. The annual lease payment for Situation 2 is $71,486.40.

c. The annual lease payment for Situation 3 is $57,412.37.

Explanation:

The annual lease payments can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

<u>For Situation 1</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $62,000

r = interest rate = Lessor’s rate of return = 10%, or 0.01

n = Number of years of lease term = 5

Substituting all the figures into equation (1), we have:

P = ($62,000 * (0.01 * (1 + 0.01)^5)) / (((1+0.01)^5) - 1)

P = $12,774.47

Therefore, the annual lease payment for Situation 1 is $12,774.47.

<u>For Situation 2</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $421,000

r = interest rate = Lessor’s rate of return = 11%, or 0.11

n = Number of years of lease term = 10

Substituting all the figures into equation (1), we have:

P = ($421,000 * (0.11 * (1 + 0.11)^10)) / (((1 + 0.11)^10) - 1)

P = $71,486.40

Therefore, the annual lease payment for Situation 2 is $71,486.40.

<u>For Situation 3</u>

P = Annual lease payments = ?

A = Fair value of leased asset = $186,000

r = interest rate = Lessor’s rate of return = 9%, or 0.09

n = Number of years of lease term = 4

Substituting all the figures into equation (1), we have:

P = ($186,000 * (0.09 * (1 + 0.09)^4)) / (((1 + 0.09)^4) - 1)

P = $57,412.37

Therefore, the annual lease payment for Situation 3 is $57,412.37.

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A neurobiologist explains to his students that the human nervous system is analogous to electrical circuits in homes. if the cir
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3 years ago
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
Aleks [24]

Answer:

b. $216.08

Explanation:

Fn = Fo * (1+g)^n

Fn = $250*(1.05)^7

Fn = $250*1.40710

Fn = $351.775

Nominal net returns = $351.775 * (1.04)^7

Nominal net returns = $351.775 * 1.315932

Nominal net returns = $462.912

After tax return = Nominal net returns * (1 - 20%)

After tax return = $462.912 * (1 - 0.2)

After tax return = $370.33

After-tax, risk adjusted discount rate = 0.1*(1 - 0.2)

After-tax, risk adjusted discount rate = 0.1*0.8

After-tax, risk adjusted discount rate = 0.08

After-tax, risk adjusted discount rate = 8%

PV after-tax net return in 7th year = After tax return * (1+8%)^-7

PV after-tax net return in 7th year = $370.33 * (1+0.08)^-7

PV after-tax net return in 7th year = $370.33 * 0.583490

PV after-tax net return in 7th year = $216.08

5 0
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Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets
stich3 [128]

Answer:

The correct answer is $33,880.

Explanation:

According to the scenario, the given data are as follows:

Direct labor = $5.60 per unit

Actual level of Activity = 6,050

So, we can calculate the direct labor in planning budget by using following formula:

Direct labor in planning budget = Actual level of Activity × Direct labor

By putting the value, we get

Direct labor in planning budget = 6,050 × $5.60

= $33,880

Hence, The direct labor in the planning budget for May would be closest to $33,880.

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Which best describes the similarity and differences between the Construction pathway and the Maintenance/Operations pathway?
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Answer:

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