Answer:
a. True
Explanation:
The Activity variance is based on the difference in actual level of activity used in flexible budget and the level of activity accounted in the planning or master budget
The annual dividend on the preferred stock is $1000 in total.
<h3><u>
What is an Annual dividend?</u></h3>
- An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
- A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
- The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.
Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.
The company has 2000 shares of 5% that is: (2000*5)/100 = 100
with a par value of $10, which becomes:
100*$10 = $1000.
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It is referred to as a life savings account<span />
Answer: b. An investor will be able to sell these shares for a higher price and make a profit.
Explanation:
Capital gains are a way to earn a return from owning stock in a company. They involve buying stock at a certain price and then selling the stock when the price increases. The difference between the selling and the buying prices is your capital gain.
This is the benefit to the investor here. If they buy a stock that grows with the company. They will be able to sell at a higher price eventually such that they will make a capital gain.
