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3 years ago

When a company has both common and preferred stock, its ROE must be adjusted by ______. (Select all that apply.)

1 answer:

3 0

When a company has both the common and preferred stock, then, its ROE must be adjusted by subtracting the preferred stock balance from the total stockholders' equity and subtracting preferred stock dividends from net income.

The ROE means Return on equity.

Return on equity is used to measure the profitability of a business in relation to its equity.

If the company have common and preferred stock, then, its ROE must be adjusted by subtracting the preferred stock balance from the total stockholders' equity and subtracting preferred stock dividends from net income.

Therefore, the Option A and C is correct.

Missing options includes "A) subtracting the preferred stock balance from the total stockholders' equity, B) adding the preferred stock dividends to net income, C) subtracting preferred stock dividends from net income , D) adding the preferred stock balance to total stockholders' equity"

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If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs. a. Th

Alex Ar [27]

Answer:

The answer is B.

Explanation:

Capital is what is used to start a business. It is what the owner's contribution in the business. In advanced class, it is called stock or equity. Capital is usually from the owner's savings. But if this money is borrowed either from an individual or a bank, the person is a borrower while the other party is the lender.

Option A is incorrect because money raised from someone makes the person borrowing a borrower and not a saver.

Option C and D are incorrect because the items needed for the business are not consumables, they are needed for the smooth running of the business, hence they are not consumption.

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3 years ago

Coffee Corporation has 2,000 shares of common stock outstanding. John owns 700 of the shares, John’s grandfather owns 100 shares

nekit [7.7K]

Answer:

1,000 shares

Explanation:

The 318 attribution rule states that stock owned directly or indirectly by a partnership is considered to be owned by any partner that owns 5% or more in the business.

This is relevant to family owned businesses and is a way to mark out principal owners of a business in order to avoid tax evasion and fraud.

In this scenario John directly owns 700 of the outstanding shares. But according to the 318 attribution rule, since he he is a 50% partner he owns half of the outstanding 2,000 shares. That is 1,000 shares.

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3 years ago

Today is your 20th birthday, and your parents just gave you $5,000 that you plan to use to open a stock brokerage account. You p

Alex Ar [27]

Answer:

You anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

Explanation:

To calculate this, we use the formula for calculating the future value (FV) and FV of ordinary annuity as appropriate as given below:

FVd = D * (1 + r)^n ......................................................................... (1)

FVo = P * {[(1 + r)^n - 1] ÷ r} ...................... (2)

Where,

FVd = Future value of initial deposit or balance amount as the case may be = ?

FVo = FV of ordinary annuity starting from a particular year = ?

D = Initial deposit = $5,000

P = Annual deposit =s $500

r = Average annual return = 12%, or 0.12

n = number years = to be determined as necessary

a) FV in five years from now

n = 5 for FVd

n = 4 for FVo

Substituting the values into equations (1) and (2), we have:

FVd = $5,000 * (1 + 0.12)^5 = $8,812

FVo = $500 * {[(1 + 0.12)^4 - 1] ÷ 0.12} = $2,390

FV5 = Total FV five years from now = $8,812 + $2,390 = $11,201

FVB5 = Balance after $5,000 withdrawal in year 5 = $11,201 - $5,000 = $6,201.

b) FV in 10 years from now

n = 10 - 5 = 5 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB5 = $6,201 * (1 + 0.12)^5 = $10,928

FVo = $500 * {[(1 + 0.12)^5 - 1] ÷ 0.12} = $3,176

FV10 = Total FV 10 years from now = $10,928 + $3,176 = $14,104

FVB10 = Balance after $10,000 withdrawal in year 10 = $14,104 - $10,000 = $4,104

c) FV in 45 years from now

n = 45 - 10 = 35 for both FVd and FVo

Using equations (1) and (2), we have:

FV of FVB10 = $4,104 * (1 + 0.12)^35 = $216,690

FVo = $500 * {[(1 + 0.12)^35 - 1] ÷ 0.12} = $215,832

FV45 = Total FV 45 years from now = $216,690 + $215,832 = $432,522

Conclusion

Therefore, you anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.

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3 years ago

A social responsibility theory of business according to which a corporation's duty is to make a profit while avoiding causing ha

Lena [83]

Answer:

The answer is moral minimun.

Explanation:

The moral minimun is the less acceptable standard for ethical business behavior. Normally considered to be compliance with the law.

In other words, is the minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

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3 years ago

What tab should you choose to select a theme for your presentation?

Deffense [45]

Answer:

design

Explanation:

trust me i made a website and it will be the same for a presentation

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3 years ago

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