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jek_recluse [69]
3 years ago
10

Graphic Designs has 68,000 shares of cumulative preferred stock outstanding. Preferred shareholders are supposed to be paid $1.6

0 per quarter per share in dividends. However, the firm has encountered financial problems and has not paid any dividends for the past three quarters. How much will the firm have to pay per share of preferred next quarter if the firm also wishes to pay a common stock dividend?
Business
1 answer:
Anna35 [415]3 years ago
4 0

Answer:

Graphic Designs

The firm will have to pay $6.40 per share next quarter.

Explanation:

a) Data and Calculations:

Number of cumulative preferred stock outstanding = 68,000

Preferred dividends per share = $1.60 per quarter

For four quarters, the preferred dividends per share = $6.40 ($1.60 * 4)

b) This will take care of the past three quarters that have accumulated and the fourth quarter.  Note that when a company wishes to pay a common stock dividend, it must pay the cumulative preferred dividends first, no matter the length of period that the dividends have accumulated.

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Mark Simpson earns $980 biweekly as a security guard for Albany Med. His group medical insurance costs $7,000 a year. The compan
kondor19780726 [428]

Answer:

$26.923

Explanation:

Biweekly payment means payments every 14 days or 2 weeks. One year has 52 weeks. Mark is paid 26 times per year

if the company pays 90% of $7000, then Mark pays 10% of $7000

Mark pays = 10/100 x $7000

=0.1 x $7000

=$700

The amount of $700 is spread over 26 weeks.

Each paycheck, Mark will be deducted

=$700/26

=$26.923 per check

5 0
3 years ago
Factors that must be considered before starting up the business
larisa [96]
Business idea
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Finance
3 0
3 years ago
g The lower risk nature of longminusterm debt in a​ firm's capital structure is due to the fact that​ ________. A. the debt hold
IRINA_888 [86]

Answer:

The correct option is C states that creditors have a higher position in the priority of claims.

8 0
3 years ago
Leaders who ensure their employees take part in decision making have a(n) ___________ leadership style.
slava [35]

Answer:

D- participate

Explanation:

leaders who have participate leadership skill or style allow their employees take part in decision making making the leader open to many possibilities and ideas.

5 0
3 years ago
You must estimate the intrinsic value of Noe Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $27.50
emmasim [6.3K]

Answer:

= $52.78 per share

Explanation:

<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>

<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>

<em>Value of equity = Value of the entire firm - Value of debt </em>

We can work out the the value per share using the steps below:

<em>Step 1</em>

<em>Calculate the total value of the firm</em>

Value of firm =  27.50/(0.1-0.07)

 = $916.66 million

<em>Step 2</em>

<em>Calculate the value of equity</em>

<em>Value of equity = Value of the entire firm - Value of debt</em>

= $916.66 million - $125.0 million

=791.666 million

<em>Step 3</em>

<em>Calculate the value per share</em>

Value per share = Value of equity/ units of common stock

=$791.666 million/15 million units

= $52.78 per share

3 0
2 years ago
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