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
sleet_krkn [62]
3 years ago
15

Prime Company began operations in January, 2019, by issuing 5,700 shares of 9%, cumulative, $65 par value preferred stock and 25

,000 shares of $8 par value common stock. Prime Company paid $26,000 of dividends in 2019, they paid $35,000 of dividends in 2020, they paid $38,000 of dividends in 2021, they paid $24,000 of dividends in 2022, and they paid dividends of $50,000 in 2023. Calculate the amount of the $50,000 dividend paid in 2023 that was paid to common stockholders.
Business
1 answer:
8090 [49]3 years ago
6 0

Answer:

Preference dividend = 9% x $65 x 5,700 shares

                                = $33,345

Dividend paid to ordinary shareholders = $50,000 - $33,345

                                                                 = $16,655

Explanation:

The dividend paid to preferred stockholders is 9% of the par value multiplied by number of preferred stock outstanding. The dividend paid to common stockholders is the difference between total dividend paid and dividend paid to preferred stock holders.

You might be interested in
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will
nata0808 [166]

Answer:

The price of the stock today is $54.61

Explanation:

The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:

Assuming that the dividend is paid at the end of the period.

Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]

Where,

  • r is the required rate of return
  • n is the number of years of annuity

The price of the stock today is,

P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]

P0 = $54.607 rounded off to $54.61

5 0
3 years ago
Ue or false: increasing the number of stocks in a portfolio reduces market risk.
Triss [41]
False. It does not reduce market risk.
7 0
3 years ago
The Earned Income Credit is one alternative to____controls.
nevsk [136]

The Earned Income Credit is one alternative to PRICE controls

7 0
3 years ago
A primary difference between macroeconomics and microeconomics is
sleet_krkn [62]

'Micro is the study of individuals and business decisions while macroeconomics while macro studies the decisions of the governments and countries.'

Microeconomics examines individual markets while macroeconomics examines the economy.

6 0
2 years ago
Lowering the discount rate can promote full employment because
Keith_Richards [23]
Lowering the discount rate can promote full employment because <span>companies are more likely to expand and hire more workers. High inflation is the circumstance which usually accompanies a period of economic expansion. </span>
7 0
2 years ago
Other questions:
  • On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
    12·2 answers
  • Making it right the first time is
    9·1 answer
  • Assuming a court did find there was a valid offer, if there was an action brought against the store, would Vinny's mistake of gi
    7·2 answers
  • Which business letter feature is found at the top of the page?
    13·1 answer
  • Which of the following is correct?a. There is consensus among economists that unions are good for the economy.b. There is consen
    11·1 answer
  • An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its r
    14·1 answer
  • Certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:
    10·1 answer
  • Washington state had a bumper apple crop this year, significantly increasing the supply of apples in the U.S. Given this informa
    13·1 answer
  • An industrial oven and fryer is an example of which factor of production?
    13·2 answers
  • Chamberlain Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 12.2 percent
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!