Answer:
the dividends in arrears = $2,800,000
the total dividend that must be paid this year = $5,600,000
Explanation:
<u>the dividends in arrears</u>
Last Year = 200,000 shares × $200 × 7%
= $2,800,000
<u>total dividend that must be paid this year</u>
<em>Note : The Preference Shares are cumulative meaning that arrears in dividends are accumulated to be paid at a future date</em>
Last Year`s Dividend $2,800,000
<em>Add </em>This Year`s Dividend $2,800,000
Total $5,600,000
They are called producers
Answer:
<u>Leverage Ratios</u>
Explanation:
Leverage ratios signify the proportion of debt. The purpose behind calculating such ratios and their interpretation being to assess an entity's reliance on debt for raising long term capital.
Debt to investments ratio would be the proportion of debt used in the total investment made by a company.
Debt to investments ratio is computed as : 
In the given case, the company utilized it's funds from debt to the tune of $20 million for it's investments in buying out another company.
Total investments = $ 20 million in debt + $20 million own funds i.e retained profits = $40 million
Out of $40 million, $20 million has been financed by debt.
Thus, Debt to investments ratio is 0.5.
Lower the debt to investment ratio, better it is for the company since lower will be interest and principal repayment obligations.
Answer:
C.
Explanation:
just got it right on Edge
I️ don’t know for sure which one it would be