1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Grace [21]
3 years ago
10

Which most accurately describes the difference between common stock and preferred stock?

Business
2 answers:
maxonik [38]3 years ago
6 0
Common stock is a corporate owned equity. Common stock shareholders have a right to the company's assets after all bondholders, preferred stock/shareholders and other debt holders are paid first and in full. Preferred stock has the owner entity to a fixed amount of money. Those that are preferred shareholders/stockholders receive money before any common stock holders do. They have a higher claim on assets and company earnings. 
liq [111]3 years ago
3 0

Common stock and preferred stock are the two main types of stocks. Common stocks are issued to public to generate a stream of funding to expand the business. The common stocks are also referred to only as stocks.

Preferred stock on the other hand is a share of ownership in a public company.

The following most accurately describes the difference between common stock and preferred stock: Preferred stock pays out earnings at fixed, regular dividends

You might be interested in
Suppose Stark Ltd. just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2
Sergeu [11.5K]

Answer:

Ans, The cost of the company’s cost of equity capital using the arithmetic average growth rate is 10.63% and using the geometric average of the growth rate is 10.60%

Explanation:

Hi, this is the equation we need to solve in order to find the company’s cost of equity capital.

r=\frac{Dividend}{Price} +g

As you can see, we almost have everything, the only problem here is "g", its growth rate, so let´s find "g" using the arithmetic average, but first, we need to find the growth rate for every period, the formula is

g=\frac{(FinalDividend-PastDividend}{PastDividend}

Therefore, we need to find 4 g´s, let´s call them g1, g2, g3 and g4:

g1=\frac{(1.98-1.80)}{1.80} =0.10

g2=\frac{(2.05-1.98)}{1.98} =0.0354

g3=\frac{(2.16-2.05)}{2.05} =0.0537

g4=\frac{(2.24-2.16)}{2.16} =0.0370

So the average is:

Average(g)=\frac{0.10+0.0354+0.0537+0.0370}{4} =0.0565

Therefore, the average growth rate is 5.65%

And the company’s cost of equity is:

r=\frac{2.24}{45} +0.0565=0.1063

so, if the average growth rate is found by using the arithmetic average is 10.63%.

Now, let´s find the geometric average

g(average)=\sqrt[4]{(1+0.10)(1+0.0354)(1+0.0537)(1+0.0370)} -1=0.0562

therefore, using the geometric average to find the growth rate, the company’s cost of equity is:

r=\frac{2.24}{45} +0.0562=0.1060

using the geometric average, the company’s cost of equity is 10.60%

Best of luck.

7 0
3 years ago
Material requirements plus an allowance for normal inefficiencies are added together to determine the.
azamat

Material requirements plus an allowance for normal inefficiencies are added together to determine the standard quantity of a direct material per unit of output.

<h3>What is the standard quantity?</h3>
  • The number of resources that should have been utilized to finish the period's output, as determined by multiplying the actual number of units produced by the standard quantity per unit.
  • It is calculated by multiplying actual production units by the standard material quantity per unit.
  • For example, during the month of March, a company manufactured 2000 items.
  • The typical amount of material needed to produce one unit of output was 5 pounds.
  • A standard amount against which a quantity is measured [e.g., gram, meter, second, liter, pascal; units of the aforementioned quantities].
  • Chemists conduct many measurements.
  • If the mass of a substance is discovered to be 6.0 grams, this can be stated mathematically. m = 6.0 g.

Therefore, material requirements plus an allowance for normal inefficiencies are added together to determine the standard quantity of a direct material per unit of output.

Know more about standard quantity here:

brainly.com/question/17192301

#SPJ4

The complete question is given below:
Material requirements plus an allowance for normal inefficiencies are added together to determine the ___________________ of a direct material per unit of output.

4 0
1 year ago
An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the y
ANTONII [103]

Answer:

236.25

Explanation:

Calculation to determine X

First step is to calculate the 6 months Yield

6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)

6 month Yield=(40/60) (80/60) (157.60/160)-1

6 month Yield=5%

Second step is to calculate the Annual equivalent

Annual equivalent=(1.05)^2-1

Annual equivalent=10.25%

Third step is to calculate the 1 year yield

1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)

1 year yield=(40/50) (80/60) (175/160) (x/250)-1

1 year yield=0.1025

Now Let calculate X

x(0.004667)=1+.1025

x(0.004667)=1.1025

x=1.1025/0.004667

x=236.25

Therefore X is 236.25

7 0
2 years ago
For the case of a perfectly price-discriminating monopolist (ppdm), producer surplus can be calculated as:
Marrrta [24]

Answer:

Explanation:

Producer surplus can be defined as the difference between how much a person can receive by selling a good at the market price versus how much a person would be willing to accept for the given quantity of good.

The Perfect Price Discrimination (1st degree price discrimination) will occur when an organization charges a different price for every unit consumed.

Producer surplus is formally given as PS = TR( q ppdm ) 0 q ppdm MC(q)dq

Where TR is the Total Revenue

For total cost and the definite integral of marginal cost over the range of output, we find that PS = TR( q ppdm ) TC( q ppdm ).

That is the sum of the consumer surplus and producer surplus is the total gains from trade.

8 0
3 years ago
Austin and kayla have $35,000 in debt (student loan, credit cards, car loan) but have cut up all of their credit cards and start
Klio2033 [76]

The answer is a definite NO. No one should EVER cash in their 401(k) to pay off debt. You will never be able to recover from the loss of compounding interest if you take out money from your retirement account. This money should be saved for retirement or EXTREME emergencies.

Im this case, Austin should take the amount of his raise and use that to start paying down his debt FASTER.

6 0
3 years ago
Other questions:
  • ​when an individual who has previously taken antabuse drinks alcohol, he or she will probably
    12·1 answer
  • A manager checked production records and found that a worker produced 185 units while working 50 hours. In the previous week, th
    11·1 answer
  • Successful businesses are keenly focused on their?
    12·1 answer
  • Approximately how many people in the united states are over the age of 100?
    13·1 answer
  • What is the total amount of adjustments on evies tax return
    13·1 answer
  • Although a marketing information system primarily serves the​ company's marketing and other​ managers, it might also provide inf
    14·1 answer
  • Suppose that you are a big fan of the Harry Potter books. You would love to own a copy of the very first printing of the first​
    6·1 answer
  • In the leadershio grid employees preferred which of the following styles?
    5·1 answer
  • What is greater 135 inches or 11 feet?
    9·2 answers
  • the seattle corporation has been presented with an investment opportunity whihc will yield cash flows of 30000 per year
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!