Answer:
$124,000 is the correct answer if we use 6% which is the correct question scenario. If we take 7% then its
Explanation:
The cash dividend announced is $160,000. Remember the first payment goes to preferred shareholders and then the amount left would be distributed among the ordinary shareholders.
The dividend share of Preferred shareholders = 6000 shares * $100 par value * 6% fixed rate = $36,000
After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:
Share of Dividend of ordinary shareholders = $160,000 - $36,000
= $124,000
Similarly if we use 7% fixed rate, then
The dividend share of Preferred shareholders = 6000 shares * $100 par value * 7% fixed rate = $42,000
After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:
Share of Dividend of ordinary shareholders = $160,000 - $42,000
= $124,000
Answer:
Increase the production to decrease the fixed cost per unit
Explanation:
The reason is that if the production increases then the fixed cost will start decrease because the level of production and fixed cost per unit are inversely proportional to each other. Now if the production increases to 1250 ($500/0.4) units then the firm is at no profit and no loss position (Breakeven position). So all the firm has to do is increase its production above 1250 and generate the demand of increased production at the same price.
Answer:
9.68%
Explanation:
Percent Return on Investment is calculated as Net Profit / Cost of Investment x 100
Net Profit= $46,620 (1,000 x $46.62 per share) + $950 (1,000 x $.95 per share) - $43,370 (1,000 x $43.37 per share) = $4,200
Cost of Investment= $43,370 (1,000 x $43.37 per share)
Percent Return on Investment= $4,200 / $43,370 x 100 = 9.68%
Answer:
economic (or business) cycles are less severe.
Explanation:
If the wages follow the general price level, it means that they will follow the inflation rate. When the economy is strong and inflation might rise, then the wages should increase accordingly. When the economy is starting to enter a recession then the inflation rate will reduce, so wages will not increase as much (if any increase at all).
This type of economic policy favors expansion cycles since private consumption is the main component of the GDP and also helps when the economy enters a recession because the wages will follow inflation rate which will help make the recession less severe and hopefully shorter.
One basic concept for this to work is that inflation is always a positive number, countries rarely (if ever) go through deflation processes.
What indicates the maximum quantity of a product that may be brought into a country in a specific period is a quota.
<h3>What does quota mean?</h3>
A quota is the maximum monetary value of a good and service that can be imported into a country for a specific period.
The purpose of a quota is to restrict the amount of import into a country so as to boost local production of the good for which the quota is placed. Quotas also limit foreign competition.
To learn more about imports, please check: brainly.com/question/26497713
