Answer:
In 2021, preferred stockholders will be paid $9000 dividends while common stockholders will be paid $1000 in dividends.
Explanation:
The preferred share are cumulative which means that they accrue dividends in case the company is unable to pay dividend in a certain year. This means that the company needs to pay the preferred dividend in future whenever it declares dividends if it has not paid the dividend on preferred share in the previous years.
The preferred dividends are paid prior to the common stockholders.
Thus, the dividend for 2019 and 2020 will be paid along with that of 2021 when the company pays dividends in 2021.
The preferred dividend per year is = 50 * 0.06 * 1000 = $3000
The accrued preferred dividends for 2019 and 2020 are = 3000 * 2 = 6000
Preferred dividend to be paid in 2021 = 6000 + 3000 = $9000
Common stock dividends to be paid in 2021 = 10000 - 9000 = $1000
Answer:
a. the decision to engage in one activity means forgoing some other activity.
Explanation:
Opportunity cost is the cost incurred when an economic agent forgoes some other activities to engage in one activity.
Economic agents have to make choices because wants are unlimited and resources are limited.
Opportunity cost is also known as economic cost.
An example of opportunity cost : Assume a doctor leaves his job where he earns $500,000 per annum to start his own business where his accounting profit is $700,000. His Opportunity cost is $500,000.
I hope my answer helps you.
Answer:
B.
Explanation:
Vertical integration is a merger of companies at different stages of production and/or distribution in the same industry. A strategy that many companies use to gain control over their industry´s value chain. This strategy is one of the major considerations when developing corporate level strategy.
The important question in corporate strategy is, whether the company should participate in one activity (one industry) or many activities (many industries) along the industry value chain.
For example, the company has to decide if it only manufactures its products or would engage in retailing and after sales services as well.
Answer:
NPV = $55,894.45
Explanation:
the initial outlay of the project is $200,000
the salvage value is $10,000
useful life 10 years
annual costs $9,000
annual savings $50,000
luckily there are no taxes in space
we must determine the effective interest rate in order to be able to discount the future cash flows
(1 + 0.0478/6)¹² - 1 = 9.99%
the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000
net cash flow for year 10 = $41,000 + $10,000 = $51,000
using a financial calculator, the NPV = $55,894.45
Answer:
Legal and environmental.
Explanation:
PEST is a short form for political, economic, social, and technological factors. These are external factors likely to impact business performance. Entrepreneurs should analyze, understand them, and include their effects in business plans.
Other external factors that may affect business performance are legal and environmental.
For the legal factors, an entrepreneur should analyze the impact of possible changes in laws and legal interpretations on their businesses. In the environmental analysis, the entrepreneur should be aware of the industry's environmental regulations and restrictions. They should plan for possible changes in license limitations.
