1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veseljchak [2.6K]
3 years ago
8

The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr

ed stock. The board of directors of Tru declared cash dividends of $144,000 in 2018 after paying $54,000 cash dividends in each of 2017 and 2016.
What is the amount of dividends common shareholders will receive in 2018?
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
7 0

Answer:

$12,600

Explanation:

Annual Dividend to preferred stock = $1,140,000 × 7%

                                                           =  $79,800

A schedule of preferred stock dividend in Arrears is as follows :

               Dividend              Paid                Arrears

2016        $79,800           $54,000           $25,800

2017        $79,800           $54,000           $51,600

2018        $79,800           $131,400                 0

Dividends of $131,400 has to be paid in 2018 to cover all the arrears.

Principle : Preference dividends (and their arrears if cumulative) are paid first before dividends distribution to common stock holders.

Common Stock Holders receive the remaining amount of dividends of $12,600 ($144,000 - $131,400)

You might be interested in
Which of these statements best defines organizational​ design?a.allowing top managers to make decisionsb.engaging in accomplishi
shusha [124]
<span>a. allowing top managers to make decisions, because the other 3 answers could all fall under the first answer. organizations are designed from top down. This makes a. the best answer.</span>
6 0
3 years ago
Which description properly describes a step involved in cellular respiration? A. Glucose is created them the energy gained is tr
Nat2105 [25]

Answer:

a

Explanation:

3 0
3 years ago
Suppose an industry has 100 firms, each with a supply curve P = 50 + 10Q . Furthermore, suppose the market demand curve is given
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:

P = 50 + 0.1Q

Check: since Q = 100

P = 50 + 10/100Q

P = 50 + 0.1Q

To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:

Market demand = P = 200 - 0.9Q

Market Supply = P = 50 + 0.1Q

Therefore,

200 - 0.9Q = 50 + 0.1Q

200 - 50 = 0.1Q + 0.9Q

150 = Q

Equilibrium quantity = 150 units

Since P = 50 + 0.1Q

P = 50 + 0.1(150)

P = 50 + 15

P = 65

Equilibrium price is 65.

The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.

8 0
3 years ago
Round 1/3 of who can answer the fastest (part 2)
faust18 [17]

Answer:

1st

Explanation:

3 0
2 years ago
The general message of the full disclosure principle is that: a. information is symmetric. b. information is costly to fake. c.
erica [24]

Based on financial and accounting principles, the general message of the full disclosure principle is that "<u>the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."</u>

This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.

This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.

Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.

Hence, in this case, it is concluded that the correct answer is option D.

Learn more here: brainly.com/question/24280368

6 0
2 years ago
Other questions:
  • A manufacturing process produces integrated circuit chips. Over the long run, the fraction of bad chips produced by the process
    11·1 answer
  • Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating incom
    11·1 answer
  • Research and development, production, marketing and sales, and customer service are all examples of _____.
    9·1 answer
  • Suppose we have the following Treasury bill returns and inflation rates over an eight year period:Year Treasury Bills (%) Inflat
    13·1 answer
  • on January 31,2009,Village Bank had 500000 shares of $2 par value common stock outstanding. On that date the company declared a
    14·1 answer
  • ​Boeing's decision to build​ 80% of its wing flap motors​ in-house is an example of which​ strategy? A. Unrelated diversificatio
    6·1 answer
  • Need help will give points
    8·1 answer
  • Altonland Inc., a pharmaceutical company based in the United States, generally appoints a U.S. national as the head of its forei
    12·1 answer
  • 22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S
    12·1 answer
  • Ia better to rent of buy a condo? use the information below to figure it out \chegg
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!