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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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Government Purchases $15 Personal Consumption 120 Gross Investment 25 Consumption of Fixed Capital (depreciation) 5 Exports 8 Im
beks73 [17]

Answer: $156

Explanation:

The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.

Based on the information given, the GDP will be calculated as:

GDP = C + I + G + X - M

where C = consumption = $120

I = Investment = $25

G = government purchases = $15

X = exports = $8

M = imports = $12

GDP = C + I + G + X - IM

GDP = $120 + $25 + $15 + $8 - $12

GDP = $156

4 0
2 years ago
Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the r
7nadin3 [17]

Answer:

False

Explanation:

This is false.

In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.

We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.

7 0
3 years ago
Financial manager at Marshall Manufacturing, Chase is exploring sources of long-term funds to finance the construction of Marsha
daser333 [38]

Answer:

A. True

Explanation:

Since Chase wants a long term fund that doesn't require a interest, it can be advisable that Chase uses the company's retained earnings.

Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders. A business generates earnings that can be positive (profits) or negative (losses).

8 0
3 years ago
When comparing the results of LIFO and FIFO when inventory costs are​ decreasing: A. ending inventory will be higher using LIFO.
Usimov [2.4K]

Answer:

B.

Explanation:

LIFO takes the latest cost of goods into account and leads to rising cost of goods produced or purchased. This in turn leads to lower gross profit. Conversely, FIFO takes into account oldest cost of goods purchased or produced and lower cost of goods sold, thus higher gross profit.

4 0
3 years ago
Read 2 more answers
___ are poorly trained and inadequately managed employees who mean well but have the potential to cause much damage.
madam [21]

Answer:

Negligent insider.

Explanation:

<u>Negligent insider</u> are poorly trained and inadequately managed employees who mean well but have the potential to cause much damage.

Negligent insiders are the employees who are given access to the organization network. They are the ones who unintentionally make an error with the security privacy or due to their negligence they get trapped in phishing emails, risky websites, leakage of the company´s confidential data, etc. These mistakes cause a big loss to the company and these insiders turn out to be a threat to the organization. The company needs to strategies on how to mitigate these threats. They can mitigate these issues by properly training and controlling the accessibility of employees.

3 0
3 years ago
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