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4 years ago

The cumulative feature of preferred stock

Business

1 answer:

Dima020 [189]4 years ago

3 0

Answer:

B) requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.

Explanation:

In cumulative feature of preferred stock, the preference shareholders have priority of shareholders over common shareholders in the year subsequent to the year in which the dividend is not distributed. All other options given in the question are incorrect.

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Choose and describe a business that would have a significant amount of deferred revenue and share a photo of that business (or c

kondor19780726 [428]

Answer and Explanation:

Deferred revenue refers to payment received before the service or goods are delivered. Consider a subscription service that provide annual subscription such as Netflix. You may take the subscription through annual or monthly payment system. In case of annual payment system you have paid for 12 months but are currently on month 1. As a result, the 11 other months’ payment is considered as deferred revenue for Netflix.

Businesses such as this (Netflix) who sell annual subscription will have significant deferred revenue. The current Netflix subscription charges are $10.99 per month (lowest tier). In case of annual subscriptions they will likely have 11 months of deferred revenue or 11*10.99 = $120.89 as deferred revenue. Their total revenue per customer (in the lowest tier) will be $131.88. This makes their deferred revenue as 91.67% of their revenue.

5 0

3 years ago

Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced c

Leona [35]

Answer:

The amount in September would Excom debit Product Warranty Expense is $805

Explanation:

According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:

Product warranty expense = 700 radios * 5% * cost per radio $23

Product warranty expense =35*$23

Product warranty expense =$805

The amount in September would Excom debit Product Warranty Expense is $805

7 0

3 years ago

Pharmecology just paid an annual dividend of $2.00 per share. It’s a mature company, but future EPS and dividends are expected t

lesantik [10]

Answer:

a. Current Stock Price is $ 30.67

b. Current Stock price using forecasted real dividend and a real discount rate is $ 69.00

Explanation:

a. The question belongs to dividend discount model. It is used to calculate intrinsic price of the stock. This model assumes that price of stock or share is equal to net present value of its future dividends.

Price of Stock = (Current year Dividend x ( 1+ growth rate)) / (nominal cost of capital - growth rate)

Current year Dividend = $ 2

Nominal Cost of Capital = 10.25 % or .1025

Growth rate = 3.50 % or 0.0350

Price of Stock = ( $2 x (1 + 0.035) / (.1025 - .035))

Price of Stock = $ 2.07 / ( .1025 - 0.0350) = $ 30.67

b. Price of Stock = Current year Dividend + (Dividend x( 1+ growth rate)) / (real cost of capital - growth rate)

Real Cost of Capital = [ (1 + nominal cost of Capital) / ( 1 + inflation rate)-1 ]

Inflation rate = 3.50 % or .0350

Real Cost of Capital = [ ( 1 + .1025) / ( 1 + .0350) - 1 ] = 0.0652 or 6.50 %

Price of Stock =(Dividend x ( 1 + growth rate)) / ( Real cost of Capital - Inflation rate)

Price of Stock = ($ 2 x ( 1 + 0.0350)) / (0.0650 - 0.0350)

Price of Stock = $ 69

7 0

3 years ago

What should the body of a cover letter include

Sedaia [141]

Answer:

(1) Specific information on why you want that job

(2) Your knowledge on that position

(3) Describe what you have to offer to the employer

(4) Your qualifications

(5) The position you're applying for

8 0

3 years ago

Constance tells Jill, her best employee, that: "Your work is so good, if I like what you do over the next six months, I’ll give

frozen [14]

Jill will not win because this is an illusory promise without consideration.

Explanation:

Even if Jill sues his boss Constance for not giving him the bonus that she had promised to give if her employee, Jill works with great focus and dedication, he will probably not win the case.

The reason for this is that it was just a promise and not a contract signed between that employer and that employee. It was just an illusory promise which is not enough to sue the person or the employer. So there was no benefit of doing it.

7 0

3 years ago