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
Taunton's is an all-equity firm that has 152,000 shares of stock outstanding. The CFO is considering borrowing $245,000 at 6 per
dezoksy [38]

Answer:

The value of the firm is $1,773,333

Explanation:

<u>Calculation of Value of each share</u>

Amount borrowed (A)                    $245,000

No. of shares repurchased (B)      <u>   21,000   </u>

Value for each share (C)               <u>  $11.67   </u>

<u></u>

No. of shares outstanding after repurchase(A)    131,000

(152,000 - 21,000)

Value for each share(B)                                        <u>   $11.67   </u>

Equity value after repurchase(A*B)                     $1,528,333

Add: Amount borrowed                                      <u>  $245,000</u>

Firm value after this transaction                     <u>  $1,773,333</u>

7 0
3 years ago
Check My Work (1 remaining) Fraud detection is an important element of minimizing losses from fraud, and it is important that fr
Alexandra [31]
<h2>True. The early detection of fraud avoids greater loss.</h2>

Explanation:

The early detection of fraud needs to be done for the following reason:

  • Fraud will continue if not found earlier and thus leads to greater loss
  • The fraud team is not widen before huge loss happens
  • Easy to recover
  • Possibility of finding the loop holes even if it is from external sources
  • Detects weakness in the internal control and eradicate and make the system secure
  • Avoid huge loss and threats
  • To gain profits
  • To keep up the name of the organization
  • To bring business and to retain customers

4 0
3 years ago
The process of gathering information and deciding who should be hired, under legal guidelines, in the best interest of the organ
RoseWind [281]

Answer is process of selection.

The selection process is the process of identifying and shortlisting the best candidates with the necessary qualifications and the skill set to fill unfilled jobs in a company. The selection procedure varies by industry, firm, and even across divisions within the same organization.

Every firm builds its selection process with the urgency of employing individuals and the requirements for the job vacancy in mind. Preliminary interview, screening of applicants, employment tests, selection interview, validations and recommendations, medical exam, and ultimate decision are the stages required in the selection process.

Therefore, the answer is selection process.

To know more about selection process click here:

brainly.com/question/17174893

#SPj4

6 0
2 years ago
The 1,000 accounts receivable of Baker Company have a total book value of $30,000 (Average book value = $30). Wendy Duffo, CPA,
Lyrx [107]

Answer:

B) $29,500

Explanation:

If we are going to use the mean per unit sampling to estimate the total audited value all we have to do is multiply the total number of accounts by the mean audited value of the sample (50 accounts):

total estimated audited value = 1,000 accounts x $29.50 per account

total estimated audited value = $29,500

7 0
3 years ago
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u
Crank

Answer:

-$414,444.44

Explanation:

The computation of the net present value is shown below:

Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)

= -$1,570,000 + $104,000 ÷ (12% - 3%)

= -$1,570,000 + $1,155,555.56

= -$414,444.44

Hence, the net present value is -$414,444.44

Since the net present value comes in negative so the project is rejected

         

8 0
3 years ago
Other questions:
  • A customer buys a new issue municipal bond with a dated date of January 1st, settling on February 1st. The first interest paymen
    11·1 answer
  • Consumers will often turn to one of their formal or informal ______ groups for advice and guidance on acceptable beliefs, attitu
    10·1 answer
  • Given the thinker / leadership theory / decision-making paradigm that you've adopted and defended thus far, compose an essay, 3-
    9·1 answer
  • Development of most new drugs, from discovery to marketing approval, usually takes ________.
    11·1 answer
  • Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,040. The freight
    11·1 answer
  • The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the p
    11·1 answer
  • On January 1, 2021, Bishop Company issued 6% bonds dated January 1, 2021, with a face amount of $33 million. The bonds mature in
    8·1 answer
  • Please help i will give brainliest
    5·1 answer
  • 3. A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 5% interest rate or issu
    10·1 answer
  • Because of competitive pressures, some firms have used packaging and labeling practices that are questionable, misleading, decep
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!