Explanation:
The journal entry for issuance of the stock for acquiring the land is shown below:
Land A/c Dr $82,600 (5,900 shares × $14 per share)
To Common stock A/c $64900 (5,900 shares × $11 per share)
To Additional paid-in capital in excess of par - Common stock A/c $17,700 (5,900 shares × $3 per share)
(Being the issuance of the stock for acquiring the land is recorded)
Answer: 16%
Explanation:
Interest rate on long term treasury securities is calculated below using following formula:
Interest rate = Real risk-free rate + inflation premium + default risk premium + liquidity premium + maturity risk premium
= 3% + 8% + 2% + 2% + 1%
= 16%
Interest rate on long term treasury securities is 16%.
Answer: a par
Explanation:
From the question, we are informed that an investor wishes to buy a new issue of U.S. Government agency bonds and was recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity.
It should be noted that new issues that relate to agency securities are typically sold by a selling group which will be appointed by the agency and such groups are usually made up of broker dealers and large banks.
The group will then sell the issue to the public at par and out of the revenue that is made, a selling concession will be paid by the agency to the selling group.
Answer:
a.none of these answers are correct
Answer:
Dividend paid to be paid to common stockholder=$ 20,000
Explanation:
Common stock holders are the real risk bearers as they receive as dividends the residual amount after all other claims have been settled.
Preference shares entitles the holders to participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares
Cumulative preference shares: Cumulative simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/
Preference dividends
2019 - 5.5% × $100 × 5,000= $27500
2020 - 5.5% × $100 × 5,000 = $27500
Total preferred to be paid in 2020 = 55,000
Dividends paid to common stock = Total dividend for 2020- Total preference dividend in 2020
Dividend paid to be paid to common stockholder
= 75,000-55,000= 20,000
Dividend paid to be paid to common stockholder=$ 20,000
