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hjlf
3 years ago
13

As a preferred stockholder, you are entitled to numerous preferences and privileges over common stockholders. If you are a prefe

rred stockholder of a company that has fallen on economic hardship and is likely to go bankrupt, which preference or privilege of preferred stock is going to be most useful to you
Business
1 answer:
Kobotan [32]3 years ago
6 0

Answer:

asset distribution preference

Explanation:

In such a situation the preference or privilege that would be best for you is known as asset distribution preference or liquidation preference. This is a clause that dictates that the payout in case of a corporate liquidation (such as when they are about to go bankrupt) must first go to the preferred stockholders in order for them to get their money back first. Therefore, since you are a preferred stockholder this would be the biggest privilege for you, allowing you to recover your money quickly and move on to something else.

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Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J
jasenka [17]

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

5 0
2 years ago
As you read the business news, you come across an advertisement for a bond mutual fund – a fund that pools the investments fro
Alika [10]

Answer:

Follows are the solution to this question:

Explanation:

Follows are the two ways of describing its high return:

Firstly, the mutual fund is invested in pretty unstable debt and is reciprocating with greater yields for taking a risk.

Secondly, during every decrease in bond yields, the finance kept bonds so the income on stocks exceeded this same rate of interest significantly. Remember that bond costs skyrocket as interest rates drop as well as give the purchaser an investment income. Because once interest rates are now close to zero, it's also likely that they could increase as well as the owners would then lose their money. Its high return could be due to a drop in interest rates, and not only will it not be replicated, but the low or even low return will almost definitely be followed by either a rise in interest rates.

6 0
2 years ago
If the money supply is $6,000, velocity is 5, and Real GDP is 10,000 units of output, then the price level is _____________. If
atroni [7]

Answer and Explanation:

The computation is shown below:

The Price level in the normal case

= Money supply ÷ Real GDP × Velocity

= $6,000 ÷ 10,000 units × $5

= $3

Now in the case when the money supply doubled i.e $12,000

So, the price level is

= Money supply ÷ Real GDP × Velocity

= $12,000 ÷ 10,000 units × $5

= $6

When the money supply doubles, the price level is also doubled that indicated the direct relationship between the price level and money supply

8 0
3 years ago
Explain two factors have affected the organisation of the businesses functional activities
Romashka [77]

Answer:

The two factors that affect the organization of businesses functional activities are ;

Strategy

Technology

Environment

Explanation:

Strategy determines the approach or the course of action to direct the activities of the organization of businesses. Strategy is the innovation room where new approach to solving a problem is discovered and implemented.

Technology; the technology for manufacturing goods and services affect the organization of business functional activities.

4 0
3 years ago
A struggling company determined that it would close down divisions that were in low-growth markets that had relatively low marke
vichka [17]

Answer:

dogs

Explanation:

BCG is a measurement of a company's brand control of a market. In BCG analysis, a firm's market share and the growth rate of the industry are used to check how well a brand could perform, whilst also proffering or giving advice on continuous investment means.

According to BCG matrix, there are four categories brand of firms. They are; dogs, question marks, cash cows and stars.

For dogs, the share of the market held by them is quite low when compared to what competitors hold, hence not worth investing in. They generate low returns which is why it is advisable not to invest in them. However, it is quite essential to conduct thorough investigation in terms of brands investment because for dogs, they may be profitable in the long run or act as a shield to protect others against competitors or completes the make up for other brands.

7 0
3 years ago
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