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aliya0001 [1]
3 years ago
14

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The follo

wing amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 ​ Determine the dividends per share for preferred and common stock for the second year. a. $2.00 and $0.45 b. $0.00 and $0.45 c. $2.25 and $0.00 d. $2.25 and $0.45
Business
1 answer:
RUDIKE [14]3 years ago
5 0

Answer:

The correct option is C,$2.25 and $0.00.

Explanation:

The annual preferred shares dividends=20,000*$100*2%=$40,000

In the first year ,dividends of $10,000 paid would go to preferred stockholders while the common stockholders receive nothing.

In the second year,it is imperative to note that the balance of unpaid preferred stock dividends of $30,000 ($40,000-$10,000) would be paid alongside this year preferred dividends.

preferred stock dividends=$30,000+$40,000

However the $45,000 paid is not enough to settle the preferred stockholders,again,the total dividends of $45,000 would be paid to preferred stockholders

preferred stock dividend per share=$45,000/20,000=$2.25

common stock dividend per share is $0

Option C is the correct answer.

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Cailin Corp issues 10,000 callable bonds with same coupon rate and years to maturity in part A, where coupon rate is 8%, maturit
lisabon 2012 [21]

Answer:

$955.37 per bond

Explanation:

Callable bonds are generally worth less than normal bonds since the call option decreases the value of the bondholder while increases the value of the issuer. Bonds will only be called if the interest rate falls below a certain level and calling them is cheaper (form the issuer's point of view) than keep paying high interest rates.

market price of callable bonds:

  • PV of face value = $1,000 / (1 + 5%)¹⁰ = $613.91
  • PV of coupon payments = $80 x 7.7217 (PV annuity factor, 5%, 10 periods) = $617.74
  • Price of call option = [(1 + 5%)⁵ x $1,000] - $1,000 = $1,276.28 - $1,000 = $276.28

current market price of callable bonds = $613.91 + $617.74 - $276.28 = $955.37

7 0
2 years ago
On July 1, 1992, York Co. purchased as a held-to-maturity investment $1,000,000 of Park, Inc.'s 8% bonds for $946,000, including
professor190 [17]

Answer:

Park Bonds          1,000,000

Discount on bonds (79,400)

Interest receivable   80,000

Carrying value      1,000,600

Explanation:

Investment on Park Bonds 1,000,000

interest receivable                   40,000

                      cash                           946,000

              discount on Park bonds     94,000

Carring value at December 31th 1992

946,000 x 10% = 94,600 interest revenue

Cash proceeds  1,000,000 x 0.08 = 80,000 interest receivable

Discount on Bonds                             14,600

94,000 - 14,600 = 79,400

94,600    interest revenue

(40,000)  accrued interest

54,600    gains for the period

Park Bonds          1,000,000

Discount on bonds (79,400)

Interest receivable   80,000

Carrying value      1,000,600

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If during the current year, liabilities of hayden travel decreased by $50,000 and owners' equity increased by $75,000, then:
lara [203]
The answer is "then <span> assets increased during the year by $25,000".

</span><span>liabilities of Hayden travel decreased by = $50,000 
</span><span>owners' equity increased by = $75,000
</span>assets increased during the year = $75,000 - $50,000
= $25,000
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3 years ago
How have the members of swaayam ksheer been able to double their profits?
Alborosie
By processing their milk supply by themselves and cutting out middlemen, by pooling their resources and working together, the members of Swaayam Ksheer have been able to generate more purchasing power and grow their operations and have been able to double their profits.
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Industry analysts said that the recent rise in fuel prices may be an early signal of the possibility of gasoline and heating oil
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Answer:

(E) that prices of gasoline and heating oil will stay higher than usual through

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