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bezimeni [28]
3 years ago
7

On January 2, 2010, Porter Corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. On December 31,

2013, Porter Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
Business
1 answer:
levacccp [35]3 years ago
5 0

Answer:

$720,000

Explanation:

The computation of the dividend received by the preferred stockholders is shown below:

= Number of shares issued × cumulative dividend percentage × par value per share × number of shares

= 30,000 shares × 6% × $100 × 4 years

= $720,000

By applying the above formula we can get the dividend received by the preference shareholders

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After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and
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Answer:

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6 0
3 years ago
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recomm
ruslelena [56]

Answer:

Share price : $ 56.23

Explanation:

CAPM

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.11

premium market = (market rate - risk free) 0.06

beta(non diversifiable risk) = 1.64

Ke= 0.05 + 1.64 (0.06)

Ke 0.14840

Now, we solve for the present value of the future dividends:

year   dividend*     present value**

1  2.91                 2.53

2  3.31                 2.51

3  3.78         2.49

4  4.31                 2.48

4   80.38          46.22

TOTAL            56.23

*Dividends will be calculate as the previous year dividends tiems the grow rate

during the first four year is 14%

then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

\frac{D_1}{K_e-g}

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38

Then we discount eahc using the present value of a lump sum:

\frac{Cashflow}{(1 + rate)^{time} } = PV

We discount using the CAPM COst of Capital of 14.84%

last we add them all to get the share price: $ 56.23

4 0
3 years ago
The Comil Corporation recently purchased a new machine for its factory operations at a cost of $328,325. The investment is expec
Solnce55 [7]

Answer: 15%

Explanation:

IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.

Use Excel to find the IRR.

= IRR(-328325,115000,115000,115000,115000)

= 15%

As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.

6 0
2 years ago
Text Problem 5
Alik [6]

Answer:

Please find the answer in the attached image

Explanation:

Please find attached the table used in answering this question

Marginal benefit is the change in total benefit when consumption is increased by one unit

Please find attached the image used in answering this question

4 0
3 years ago
Which of the following is true of the Siemens bribery scandal? a not selected option a It stopped before the investigation began
Fiesta28 [93]

Answer:

The true statement about the Siemens bribery scandal is:

b The CEO was involved and condoned it.

Explanation:

The 2008 Siemens scandal was an organized and deliberate effort by the company to bribe government officials in order to secure supply contracts from national governments.  It was a worldwide act perpetrated by senior management officials with a long-term pattern.  The massive bribery  attracted a fine of $160 billion. It seems that bribery is an "embedded business culture in the company."

5 0
3 years ago
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