I would say that the answer is the second c which is below the first c these answer choices are confusing.
Answer:
Unit value of $36 Ross should use when applying the lower of cost or net realizable value rule to ending inventory.
Explanation:
Inventory should be recorded on:
Lower of
Cost of product = $36 per unit
Net realizable value = selling price -selling cost = $48 - $6 = $42
So the lower value is the cost value of $36 for the product. So, this value should be used in order to determine the cost of ending inventory.
Answer:
a. Dividends to Preferred shareholders:
Total dividends:
= 20,000 * 50 * 6%
= $60,000
Dividends per preferred share:
= 60,000 / 20,000 shares
= $3.00 per share
Common shareholder dividends
Common shareholders get the remaining dividends that did not go to Preferred shareholders:
= 160,000 - 60,000
= $100,000
Common dividends per share:
= 100,000 / 50,000 shares
= $2.00 per share
b. These are cumulative preferred shares which means that accrued dividends must be paid off:
Preferred shares in total would be:
= 60,000 * 2
= $120,000
Preferred dividends per share:
= 120,000 / 20,000
= $6.00 per share
Common dividends in total:
= 160,000 - 120,000
= $40,000
Common dividends per share:
= 40,000 / 50,000 shares
= $0.80 per share
Answer:
Current share price =$77.81
Explanation:
Price of the stock today = 
.
where P4 = 
where D5 = D4(1+g)
Price of the stock today = 
= $77.81
