All categories

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.

You might be interested in

When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c

vfiekz [6]

Answer:

28%

Explanation:

Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).

Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.

8 0

3 years ago

During 2019, Sigma Company earned service revenue amounting to $700,000, of which $630,000 was collected in cash; the balance wi

Kryger [21]

Answer:

$700,000

Explanation:

As we know that

The income statement is the statement that records the income and the expenditure for a company

The expenses should be shown on debit side while the income or revenue is shown on the credit side

Since the total service revenue earned is $700,000 and the same is to be shown in the income statement as it records all the cash and credit sales or service revenue

Therefore, the total amount i.e $700,000 is reported on the income statement

4 0

3 years ago

A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first

Lelechka [254]

Answer:

$7,112.73

Explanation:

We can use the financial calcualtor and some formulas or use the easy way and use excel goal seek.

We contruct the table and find the value of the principal cell that makes the principal after 60 payment zero with payment of $1,000 decreasing 2% each month

the following is made:

A1 period

1 to 60

B1 couta

1,000 x (power(0.98;period cell)

C1 interest

previous principal x 9/1200

D1 amortization B1 - C1 that is installment less interest

E1 principal: previous principal - current period amortization

--loan schedule is attached to provide more help--

6 0

3 years ago

A recent income statement of McClennon Corporation reported the following data:

arsen [322]

Answer:

The correct answer is option b.

Explanation:

The number of units of output sold is 8,000 .

The sales revenue is $9,600,000 .

The variable costs are $6,000,000 .

The fixed costs are $2,600,000.

The price of the product

= $\frac{Sales\ Revenue}{Q}$

= $\frac{9,600,000}{8,000}$

= $1,200

The average variable cost is

= $\frac{TVC}{Q}$

= $\frac{6,000,000}{8,000}$

= $750

Profit = TR - TC

Profit = $Price\ \times\ Q - (AVC\ \times\ Q )\ +\ TFC)$

$1,270,000 = $1,200Q - $750Q - $2,600,000

$3,870,000 = $450Q

Q = $\frac{3,870,000}{450}$

Q = 8,600 units

7 0

3 years ago

Franchising offers all the following benefits for franchisers except Group of answer choices franchise agreements require a cert

Ierofanga [76]

Answer:

Franchising offers all the following benefits for franchisers except

the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.

Explanation:

When a franchisor gives a franchisee the authority to do business in the franchiser's trade name, using its business system, it is called franchising. The franchisee pays a royalty, including an initial franchise fee, to the franchisor in exchange for this right. In this business arrangement, the franchise right confers on the franchisee the authority to establish branches of the franchising company.

3 0

3 years ago