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2 years ago

The name preferred stock is in reference to the fact that:_____.

Business

1 answer:

Sliva [168]2 years ago

8 0

Answer: d. preferred dividends must be paid in full before any common stock dividends can be paid.

Explanation:

Preferred stocks will see their dividends paid before those of common shares. Indeed if the company was to liquidated, preferred shareholders get preference over common shareholders.

Preferred dividends have preference over common dividends and so their name reflects this by being called ''preferred'' shares. Some classes of preferred shares such as cumulative shares have an even greater amount of preference as their dividends will always be paid even if it takes years to do so.

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Answer: A. Target Market

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1 year ago

Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $ 50 comma 000 for the cu

Brilliant_brown [7]

Answer:

Here we have two cases and in one of these we are paying interest on a normal loan which is tax deductible and in the other case we are paying interest on a preference share which is not Tax allowable expense. So in the nutshell, the only difference will be tax amount computed in both cases for calculating Earnings available for ordinary shareholders.

Case 1. Interest paid on normal loan

Earning After tax = (Earnings before Interest & Tax - Interest) - Tax

Earning After tax = ($50,000 - 12000) - 21%

Earning After tax = $38000 - 21%*$38000

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Earnings After Tax = $38,000 - $10,500 = $27,500

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3 years ago

Pompeii, Inc., has sales of $54,500, costs of $24,800, depreciation expense of $2,700, and interest expense of $2,450. If the ta

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The activities needed to operate a business can be divided into a number of

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<h3>What are business activities?</h3>

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