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
Nataly_w [17]
3 years ago
8

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% sto

ck, $140 par, and 67,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $75,000; second year, $159,000; third year, $190,300; fourth year, $205,130.
Requried:
Compute the dividends per share on each class of stock for each of the four years.
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

<u>Dividend per Share:</u>

1st Year

Preferred dividend per share = $3.75

Common dividend per share = $0

2nd Year

Preferred dividend per share = $7.45

Common dividend per share = $0.149

3rd Year

Preferred dividend per share = $5.6

Common dividend per share = $1.169

4th Year

Preferred dividend per share = $5.6

Common dividend per share = $1.39

Explanation:

The cumulative preferred stock is the stock which accumulates or accrues dividends in case the dividends are not paid or partially paid in a particular year. These accumulated dividends or dividends in arrears are paid whenever the company declares dividends next time.

Preferred dividend per year = 20000 * 140 * 0.04  = $112000

<u>1st year</u>

Preferred dividend = 75000

Preferred dividend per share = 75000 / 20000  = $3.75 per share

Accumulated preferred dividends = 112000 - 75000 = $37000

Common dividend = 0

Common dividend per share = 0

<u>2nd year</u>

Preferred dividend = 37000 + 112000

Preferred dividend per share = 149000 / 20000  = $7.45 per share

Common dividend = 10000

Common dividend per share = 10000 / 67000 = $0.149 per share

<u>3rd year</u>

Preferred dividend = 112000

Preferred dividend per share = 112000 / 20000  = $5.6 per share

Common dividend = 78300

Common dividend per share = 78300 / 67000 = $1.169 per share

<u>4th year</u>

Preferred dividend = 112000

Preferred dividend per share = 112000 / 20000  = $5.6 per share

Common dividend = 93130

Common dividend per share = 93130 / 67000 = $1.39 per share

You might be interested in
When diversification combines two businesses in different industrial sectors, the key determinant of whether the diversification
Anton [14]
, the key determinant of whether the diversification creates value would be: whether the diversification <span>enhances the competitive advantage of either or both of the two businesses

Here is an example of business combination in different sectors that create a value.

Let's say that a mobile manufacturer called company x (from electronic sector) combines its-self with an animation company (from entertainment sector).

Company x could obtain value from this combination by rewarding free movie/tv shows subscription for every mobile phone that they sold. By doing this, the sales in both sectors will be increased

</span>
4 0
3 years ago
________ assesses the consistency of observations by different observers.
gavmur [86]
Inter rater reliability assesses<span> the consistency of observations by different observers.
</span>in statistics, inter rater reliability agreement will determine similar measurements for several statistics.By doing this, the statistics could be done faster without having to compromise its consistency
3 0
3 years ago
Read 2 more answers
In this equation what should be the coefficients of the reactant and products I2+O2-&gt;i4O9
katrin2010 [14]
The correct answer is C.

For the equations to be balanced, the coefficients must make the number of atoms of the reactants and products the same across the equation. The other answer options leave the reactants having too many atoms and the product lacking. So the only properly balanced option is answer choice C.

So the completed balanced equation is:
4I2 + 9O2 -> 2I4O9

I hope this helps! :)
4 0
3 years ago
Which one of the following is most apt to create a situation where an agency conflict could arise?A. increasing the size of a fi
Doss [256]

Answer:

C. Separating Management from Ownership

Explanation:

What is Agency

The agency refers to contractural, quasi-contractual and non-contractual fiduciary relationships which represents two to three parties. The first is a person called the agent, the second is the principal and the final is a third party. Agency authorizes an agent to act on behalf of the principal and create binding relatinships with a third party.

Agency Conflict

Agency conflict represents a conflict of interest which is unavoidable in an agency relationship where one party is to act in the best interest of the other party. Specifically, in the business or corporate settings, the agency conflict arises when there is a conflict of interest between an organisation's management and the owners of the organisation.

The challenge is that management who is the agent is expected at all times to make decisions that will constantly maximize the wealth of the owners and at times, these decisions would conflict with management's ability to maximize its own wealth

Therefore, once the management of an organisation is separated from ownership especially in a Management/ shareholders relationship, an agency conflict could arise.

6 0
3 years ago
Read 2 more answers
Suppose an economist advises a city's mayor to begin charging drivers a fee to drive on a busy highway during congested times. T
Kazeer [188]

Answer:

The correct answer is the letter b. This is a common occurrence. The policymaker usually disregards an economist's advice because they do not believe it is the most efficient policy.

Explanation:

It is common for policymakers to disregard the advice of an economist. This is because in addition to their often finding that the policies suggested by economists are not the most efficient, they observe the political return of such action, ie not just efficiency, but the extent to which this policy will bring political benefits. Thus, as in this case, the policy is not implemented because it is not popular with voters.

6 0
3 years ago
Other questions:
  • Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Niemann Company has a SUTA tax rate of 7.1%. The taxable
    14·1 answer
  • Millions of software programs have been created and have helped to improve the economy.
    7·1 answer
  • Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return i
    9·1 answer
  • what is the government-regulated distribution of a good that is in low supply. A. Surplus B. Shortage C. Rationing D. Price floo
    8·2 answers
  • In the quest to achieve competitive advantage in global markets, competitive pressures require that firms do what they can to __
    7·1 answer
  • Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space an
    8·1 answer
  • What is the total amount of cash dividends paid to common stockholders for the years ended (a) September 30, 2017, and (b) Septe
    15·1 answer
  • Select all the correct answers.
    7·1 answer
  • identify each of the following expenditures as chargeable to land, land improvements, buildings, machinery and equipment, or oth
    5·1 answer
  • Describe the elements that must be present for the courts to rule that a contract is unconscionable?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!