1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
RideAnS [48]
3 years ago
8

Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou

tstanding at December 31. What is the annual dividend on the preferred stock
Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

$75,000

Explanation:

Calculation for the annual dividend on the preferred stock

Using this formula

Annual Dividend= Number of shares × Par value × Dividend %

Let plug in the formula

Annual Dividend= 10,000 shares × $125 × 6%

Annual Dividend= $75,000

Therefore the annual dividend on the preferred stock will be $75,000

You might be interested in
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
FromTheMoon [43]

Answer:

e

Explanation:

the present value factor is the discount rate used to determine the present value of the investment

pv factor = 1 / (1 + r)^n

1 / 1.15^3 = 0.6575

8 0
2 years ago
A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid
tankabanditka [31]

Answer:

A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.

The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.

Explanation:

The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate.  It is well-known that the risks from stock are higher than the risks from bonds.  As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term.   Again, stock investments can be for the long-term unlike bonds that have defined periods.

7 0
3 years ago
Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike
alexandr1967 [171]

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions.  The debt-to-equity ratio measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

The debt to equity ratio using the book value of equity in 2019 would be 2.29.

Finding the debt-to-equity ratio.

This can be found by the formula:

= Interest bearing Debt / Book value of equity

= (Notes payable + Current maturities of long term debt + Long term debt) / Book value of equity

= (10.5 + 39.9 + 239.7) / 126.6

= 2.29

Learn more about debt-to-equity  here

brainly.com/question/21408403

#SPj4

7 0
1 year ago
X-treme Vitamin Company is considering two investments, both of which cost $10,000. The cash flows are as follows:Year Project A
liq [111]

Answer:

A) Project A = 0.83 year

B) NPV of Project B = $14,609.66

C) Answer B

Explanation:

Requirement A

We know,

Payback period = Last year with negative cumulative cash flows + (Absolute value of last year's cumulative cash flow ÷ Cash flow of the following year's negative cumulative cash flow)

Or, Payback period = A + ( B ÷ C)

                             Project A                                       Project B

Year   Cash Flow   Cumulative Cash Flow    Cash Flow  Cumulative Cash Flow

0 (A)   -$10,000      -$10,000 (B)                     -$10,000        -$10,000 (B)

1           $12,000 (C)      2,000                           $10,000(C)                 0

2              8,000         10,000                               6,000             6,000

3              6,000         16,000                              16,000           22,000

Payback period for project A = 0 + ($10,000 ÷ 12,000) = 0 + 0.833 = 0.83 year

Payback period for project B = 0 + ($10,000 ÷ 10,000) = 0 + 1 = 1 year

X-treme Vitamin Company should choose project A because it can return the investment earlier than project B.

Requirement B

We can use excel to find the Net Present Value for both the projects with a cost of capital of 10%.

The following image shows the NPV for project A and B.

From the calculation of NPV, X-treme Vitamin Company should choose project B as that project yields more present cash flows.

Requirement C

A firm should generally have more confidence in answer b because money can produce more logical sense than a year. Yes, it is easy to understand how many years a company will need to get back its cash flow. Still, the present value of cash flows provides a more specific evaluation of how to utilize the initial investment.

8 0
3 years ago
Atlas Manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. Currently Atlas produces 40
LekaFEV [45]

Answer:

The Total manufacturing costs will increase while the unit manufacturing costs will decrease

Explanation:

The most likely behavior of the total manufacturing costs as well as the unit manufacturing costs is that the Total manufacturing costs will increase while the unit manufacturing costs will decrease because Atlas Manufacturing has the capacity to produce 50,000 valves annually which is per year in which it produces 40,000 valves and is about to increase the production to 45,000 valves the next coming year which will cause the manufacturing costs to increase and inturn cause the unit manufacturing costs to decrease.

6 0
3 years ago
Other questions:
  • Explain the theories of entrepreneurship​
    12·1 answer
  • What does sfb allowed mean in real estate?
    8·1 answer
  • Over a decade ago, survivor premiered as a nighttime reality tv show during the summer season when tv ratings are normally low a
    6·1 answer
  • One source of life and health insurance underwriting information is an organization that life and health insurance companies can
    13·1 answer
  • Why is career planning important?
    8·2 answers
  • Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock
    15·1 answer
  • Hiro sells building materials to local contractors. He wants to build longterm relationships with his contractors through effect
    5·1 answer
  • Larsen Company adds materials at the beginning of the process in Department 2. Data concerning the materials used in May product
    8·1 answer
  • I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is
    12·1 answer
  • _______ is a system for gathering information from respondents by continuously monitoring the advertising, promotion, and pricin
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!