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ipn [44]
3 years ago
9

Do It! Review 11-3a Incorrect answer. Your answer is incorrect. Try again. Riverbed Corp has 3,300 shares of 7%, $103 par value

preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $123,500 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data Click if you would like to Show Work for this question: Open Show Work
Business
1 answer:
harina [27]3 years ago
5 0

Answer and Explanation:

1. The preferred stock is non-cumulative, and in previous years, the company has not skipped any dividends.

Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage

= 3300 × $103 × 7%

= $23,793

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $23,793

= $99,707

2. The preferred stock is non-cumulative, and in both of the two previous years, the company did not pay a dividend.

Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage

= 3300 × $103 × 7%

= $23,793

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $23,793

= $99,707

3. The preferred stock is cumulative, and in both of the two previous years the company did not pay a dividend.

Dividend paid to preferred shareholders =  Shares × Par value preferred stock × Shares percentage × Number of years

= 3,300 × $103 × 7% × 3

= $71,379

Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders

= $123,500 - $71,379

= $52,121

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Marginal cost is calculated for a particular increase in output by A. multiplying the total cost by the change in output. B. div
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On January 1, 2020, Waterway Company purchased 11% bonds, having a maturity value of $312,000 for $336,270.95. The bonds provide
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Answer and Explanation:

The journal entries are shown below:

1. 11% bonds payable $336,270.95

         To cash  $336,270.95

(Being the bond purchased for cash is recorded)

2. Cash ($312,000 × 11%)      $34,320

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       To 11% bond payable $4,056

(Being the interest revenue is recorded)

Fair value adjustment $1,685.05

       To Unrealized gain $1,685.05

(Being the recognition of fair value is recorded)

It is computed below:

= (333,900 - ($336,270.95 - $4,056) )

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Tyson Inc. is currently trading at $18 per share. The company is expected to pay a dividend of $1.63/per share next year. The di
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Answer:

$20.38  buy

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The computation of present value is shown below:-

Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)

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