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natta225 [31]
2 years ago
7

A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred

stock has been estimated to be 16%. The value of the preferred stock is ________. A. $64.B. $16.C. $25.D. $50.
Business
1 answer:
snow_lady [41]2 years ago
4 0

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

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A. Calculate the total estimated bad debts on the below information.
Rudik [331]

Answer:

The answer is below;

Explanation:

b. Allowance for Doubtful Accounts     Dr.$4,000

   Bad Debts                                           Cr.$4,000

c. Bad Debt Expense   Dr.$5,000

   Account Receivable Cr.$5,000

d. 1)Account  Receivable Dr.$5,000

   Bad Debt Expense   Cr.$5,000

2)Cash      Dr.$5,000

Account Receivable Cr.$,5000

5 0
3 years ago
Menthorp Inc. wants to design a variable-pay plan that fosters teamwork and business knowledge of its employees. In order to ens
Elena-2011 [213]

Answer:

cash profit sharing plan -

Explanation:

cash profit-sharing plan - it is one of the sharing plans in the profit-sharing plan. in this profit share directly to the employee through cash, stock, etc.

it is the sharing that is based on profit earned by the organization quarterly or annually. and its whole sole company how much they need to share among the employee.

4 0
3 years ago
Durable goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. those that must be replaced after
Leokris [45]

Answer:

d. those that may be stored and repaired

Explanation:

Durable goods are those goods that are stored and repaired. It is to be considered for the long-lasting so it can be stored. Also it can be repaired when they wear out

For example: mobile phone, table, chair, toys, etc

Therefore as per the given situation, the option d is correct

And, the remaining options are to be considered

3 0
3 years ago
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from histori
pychu [463]

Answer:

$19,708,745

Explanation:

We first have to calculate the present value of the bonds:

Nper = 20 (10 years x 2 payments per year)

R = 11% / 2 = 5.5%

Payment = 83 / 2 = 41.50

Future value = 1,000

PV = ?

To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67

Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.

To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding

= $838.67 x 23,500 = $19,708,745

8 0
3 years ago
Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labo
dolphi86 [110]

Answer:

Part a. What is the variable cost per unit?

Variable Cost per Unit is $ 11.13+ $ 7.29 = $18.42

Part b. What are the total costs for the year?

Production for the year is 190000 units

Calculation of Total Production = Variable costs + Fixed Costs

                                                       = 190000 units × $18.42 + $875,000

                                                       =$ 4,374,800

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

The Company Breaks Even when

Total Sales Revenue = Total Production Costs

Total Sales Revenue = $44.99 × 190000

                                    = $ 8,548,100

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

Total Production Costs = $4,374,800+$435000

                                       = $4,809,800

Therefore accounting break-even point is $4,809,800 Sales

Explanation:

Part a. What is the variable cost per unit?

Variable Cost are costs which Vary with the level of Activity.

Part b. What are the total costs for the year?

Calculation of Total Production Costs= Variable costs + Fixed Costs                                                  

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

Break-Even Point is the Point when the company neither makes a profit or a loss

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

In simple terms the break even point in Sales Revenue is equal to all Variable plus fixed costs

5 0
3 years ago
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