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12345 [234]
3 years ago
14

Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shar

es of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Year Dividend Declared
2015 $20,000
2016 $6,000
2017 $32,000

The amount of dividends paid to preferred and common shareholders in 2015 is:

a. $200 preferred; $19,800 common.
b. $4,000 preferred; $16,000 common.
c. $17,000 preferred; $3,000 common.
d. $10,000 preferred; $10,000 common.
e. $20,000 preferred; $0 common.
Business
1 answer:
DIA [1.3K]3 years ago
5 0

Answer:

The correct option is a. $200 preferred; $19,800 common.

Explanation:

These can be calculated as follows:

Dividends paid to preferred shareholders in 2015 = Number of outstanding shares of noncumulative preferred stock * Preferred stock par value * Dividend percentage of preferred stock = 400 * $10 * 5% = $200

Dividends paid to common shareholders in 2015 = Dividend declared and paid in 2015 - Dividends paid to preferred shareholders in 2015 = $20,000 - $200 = $19,800

Therefore, the correct option is a. $200 preferred; $19,800 common.

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If Vickers Company issues 5,000 shares of $5 par value common stock for $175,000, A. Paid-In Capital in Excess of Par will be cr
Sindrei [870]

Answer:

option A is correct

Paid-In Capital in Excess of Par will be credited for $150,000

Explanation:

Given data

share = 5000

share value = $5 / common stock

cash = $175000

to find out

find the option which is correct

solution

we know here we have cash value $175000

and

total common stock is = share × share value

total common stock  =5000 × 5

total common stock value is $25000

so paid capital in excess = cash - total common stock value

paid capital in excess = 175000 - 25000

paid capital in excess is $150000

so option A is correct

Paid-In Capital in Excess of Par will be credited for $150,000

4 0
3 years ago
Define and explain SMART?
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3 years ago
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4 years ago
"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research r
Anna71 [15]

Complete question reads;

"A brokerage research department has been following the common stock of Acme Corporation and has prepared a favorable research report on the company. The brokerage firm is a member of a syndicate handling an issue of Acme common stock that is currently in registration. A registered representative wishes to send the research report to all of his customers. Which statement is TRUE?"

A. The report can be sent only if it has been approved by a supervisory analyst

B. The report can be sent only if it is accompanied or proceeded by, a preliminary prospectus.

C. The report can be sent only if it has been approved by the branch office.

D. The report cannot be sent until registration is effective.

<u>Answer:</u>

<u>D. The report cannot be sent until registration is effective.</u>

<u>Explanation:</u>

Usually, under the guidelines of the Securities Act of 1933, no offer can be made to the customer unless a final registration has been made and effected by means of a prospectus.

Thus, the<u> report cannot be sent until registration is effective..</u>

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4 years ago
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