Edison Power and Light has an outstanding issue of cumulative preferred stock with an annual fixed dividend of $2.00 per share. It has not paid the preferred dividend for the last 3 years, but intends to pay a dividend on the common stock in the coming year. Before Edison can pay a dividend on the common stock 0 0 0 0 0 0 0 0 A. preferred shareholders may cast all their votes for a single director. B. preferred shareholders must receive $2.00 per share. C. preferred shareholders must receive dividends totaling $8.00 per share. D. will not necessarily receive any dividend.
Q: XYZ Credit Union serves members who live or work in Texas County. In general, can someone living in…
A: XYZ credit union is a financial co-operative owned and controlled by its members,which provides…
Q: Zhong Xi Na purchased a lot worth Php 1,300,000 at 12% interest, payable in 5 years. If he paid Php…
A: Purchase price is Php 1,300,000 Interest rate is 12% Time period is 5 years Down payment is Php…
Q: why a full set of pro forma financial statements is not needed at the feasibility analysis stage
A: Feasibility analysis evaluates the viability of a proposed project. A company carries out a…
Q: How much should be deposited in an account that will earn at an annual rate of 9%, compounded…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: What are the implications of the weak‐form, semi-strong-form, and strong-form of the EMH for…
A: The Efficient Market Hypothesis (EMH) describes a stock market that is both operationally and…
Q: Managers owning a small proportion of a firm's equity can be expected to work less, maintain more…
A: The owners or shareholders and the management team are different in a company. Ideally, managers…
Q: You manage a food company. The company will need 850,000 bushels of soya bean in 3 months. The 3…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: ing a 28% lender's affordability ratio, estimated monthly property taxes and insurance of P250, a…
A: Lender's affordability ratio is how much one can afford for the monthly mortgage payment for…
Q: A deposit of $250 earns the following interest rates: 10 percent in the first year. 8 percent in…
A: Interest earned is the amount earned on the invested amount over the period of investment. It can be…
Q: % and the projects have the following investments and cash flow. Project A 100,000.00 40,000.00…
A: Net present value is the difference between the present value of cash flow and initial investment in…
Q: Interpret and contrast the investment risk potentials of an electric vehicle manufacturer whose…
A: P/E ratio is very important in valuation of stock and has been the basis for investment in stock and…
Q: Kristie owns a perpetuity which pays $12,000 at the end of each year. She comes to you and offers to…
A: Cash Flow Per Year = $12,000 Required return =8%
Q: Philippine Airlines (PAL) plans to offer several new electronic services on flights between Manila…
A: Probability Cash Flow 55% P 40,000.00 25% P 95,000.00 5% - 15% P…
Q: Tater and Pepper Corp. reported COGS for 2021 of $33 million. Tater and Pepper listed $6.6 million…
A: Given: Particulars Amount Cost of goods sold $33.00 Millions Inventory $6.60 Millions…
Q: Firm ZLX is found by Standard & Poor to have a very low probability of default, and rates the firm…
A: Yield To Maturity (YTM) is the required return of the investors from the bond if it held till…
Q: If KLSE-CI futures (.e. FKLI) are at 1160, the cash price (KLSE-CI) is 1155, and the fair value…
A: Basis :- In Commodity market, basis is the difference between cash price of commodity and the future…
Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: Given above is the historical data of Jollibee Food Corporation's (JFC) stock price. You invested…
A: Number of shares = Total InvestmentMarket Price per share Return on Investment = ( Selling Price -…
Q: O
A: The link between a stock's price and earnings is known as the price-earnings ratio. PE ratio =…
Q: e future value and the interest earned
A: Future value refers to the amount of the current asset at some future date based on the assumption…
Q: Find the nominal rate if Php 25,000 is compounded continuously and will become Php 32,000 in 3…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: You want to purchase a machine for your business and you are given 3 different payment schedules:…
A: Given, Three payment schedules Rate of interest is 10%
Q: how to use the excel function (IRR and Effect) to determine which money lender offers a better rate:…
A: Here,
Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…
A: Solution:- Benefit cost ratio means the ratio of present value of benefits from a project to present…
Q: Company makes payments of $1,800 at the end of every month, how long will it take to settle the…
A: Mortgage: It represents the loan or credit taken by the borrower for the purpose of purchasing a…
Q: 2. Kingston Development Corp. purchased a piece of property for $2.79 million. The firm paid a down…
A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…
Q: The DDB Corporation wants to purchase a new machine for its factory operations at a cost of P…
A: Data given: Cost of Machinery = P 800,000 Annual cash flows =P 400,000 n= 5 years Salvage value =…
Q: A man is planning to invest for a project with a benefit cost ratio of 1.8 and provides annual…
A: Benefit Cost Ratio is that ration which shown the relation ship between cost and benefits of the…
Q: Here is Justin's credit card statement for the month of June. Date June 1 Beginning balance June 9…
A: Date Transaction Transaction Amount 01 June 2022 Beginning balance $ 2,500.04 09…
Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…
A: Unpaid balance method In case of the unpaid balance method, the finance charge is based on all…
Q: ) Finance Which one is a financial risk? Select one: a. Uncertainty about demand b. uncertainty…
A: Meaning of Financial risk is diffrent for different category of person. In case of individual who is…
Q: One university needs some maintenance. The owner of the university decides to deposit $400000 in an…
A: Present worth can be calculated as below Present worth = Cash flow / (1+r)^n It can also be…
Q: Why is the issue of limited personal liability so important for an independent restauranteu
A: In finance limited personal liability means that a person’s financial liability is not unlimited…
Q: 1. 2. If you are saving money in a bank, which of the following is better for you? . Bank A, which…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Ricardo recently spent a lot of money on the purchase of a new sports car. He thought he would…
A: In the world of finance, the concerned person who has made a financial decision is holding two…
Q: Receivables Investment Medwig Corporation has a DSO of 37 days. The company averages $9,750 in…
A: Accounts Receivables are the money due towards customers but not yet paid on account of goods sold…
Q: The 13-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market…
A: Time Period 13 Par Value $1,000.00 Coupon Rate 7% Market Price $ 935.00 Required YTM 6%
Q: re) TRUE?
A: The value of a firm refers to the amount which is claimed by the creditors and the shareholders.…
Q: er year, how much could you afford to spend for a higher quality heat exchanger so that these annual…
A: Present value of the the future cost considering the inflation and cost of capital would give the…
Q: 3. A financial institution offers a nominal interest rate of 12% while compounding its accounts…
A: Effective Interest Rate: It refers to the annual rate of interest provided the effects of…
Q: If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent,…
A: Given: Particulars Amount Present value(PV) $6,500 Rate 8% Years(NPER) 7
Q: Why is it important to make the distinction between company required rate of return (WACC) and…
A: WACC is the weighted average rate of return. It is the average cost of funding for a company.…
Q: A computer call center is going to replace all of its incandescent lamps with more energy efficient…
A: IRR is the Capital Budgeting techniques which shown the actual rate of return on the project earned…
Q: Suppose that an investor buy a call option on IBM stock with strike price X = 60 USD, which has 6…
A: A call option is a type of contract where the buyer of the call option has the choice of buying the…
Q: A certain company has the capacity to produce 500,000 units of a product yearly. This year, the…
A: Solution:- Break-even point means the point of sales where sales revenue is equal to the costs…
Q: Find the return on equity of a business having a return on sale of 15% with an asset turnover of 1.5…
A: Return on equity can be calculated by dividing net income by equity Return on equity(ROE) =Net…
Q: A couple plans to purchase a vacation home. The bank requires a 5% down payment on the $230,000…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: Consider the following two scenarios whereby the cost-of-carry model is violated. You are required…
A: Arbitrage Strategy :- It means taking advantage of price difference. Various investor use this…
Q: At today's spot exchange rates 1 U.S. dollar can be exchanged for 10 Mexican pesos or for 110.75…
A: Foreign currency is that currency which is not home county currency. One currency can be exchanged…
Q: monthly nominal rate of return must his investment earn for him to achieve his goal? 2. If the…
A: Present value refers to the value present today of the future stream of payments based on the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock. It is also authorized to issue 750,000 shares of $6 par value common stock. It has issued 50,000 of the common shares and 1,000 of the cumulative preferred shares. The corporation has never declared a dividend and the preferred shares are one years in arrears. Aggregate Mining has the following transactions this year: Journalize these transactions. For the stock split, show the calculation for how many shares are outstanding after the split and the par value per share after the splitAlert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
- Assume that Lily Corporation has outstanding 1,500 shares of 150 par callable preferred stock that were issued at 175 per share, and that no dividends are in arrears. If the call price is 185 per share, what journal entry will Lily make to record the recall of these shares?Edison Power and Light has an outstanding issue of cumulative preferred stock with an annual fixed dividend of $2.00 per share. It has not paid the preferred dividend for the last 3 years, but intends to pay a dividend on the common stock in the coming year. Before Edison can pay a dividend on the common stock O A. preferred shareholders must receive $2.00 per share. O B. preferred shareholders may cast all their votes for a single director. OC. preferred shareholders must receive dividends totaling $8.00 per share. O D. will not necessarily receive any dividend.Lord Aguilar Corp. plans to declare and distribute a dividend in December 2019. There are 20,000 shares of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. Required: Determine the amount of the dividends that should be paid to the preference and ordinary shareholders if the preference shares 1. cumulative and nonparticipating and the total amount that the board of directors has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000. 2. cumulative and participating and the total amount that the board of directors has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000. SUB - PARTS TO BE SOLVED
- Lord Aguilar Corp. plans to declare and distribute a dividend in December 2019. There are 20,000 share of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. Required: Determine the amount of the dividends that should be paid to the preference and ordinary shareholders if the preference shares 1. Cumulative and nonparticipating and the total amount that the board of directors has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000 2. Cumulative and participating and the total amount that the board of directors has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000Splish Company's ledger shows the following balances on December 31, 2025. 7% Preferred stock-$10 par value, outstanding 21,200 shares Common stock-$100 par value, outstanding 32,100 shares Retained earnings Assuming that the directors decide to declare total dividends in the amount of $396,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.) $ $ Preferred b. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) $ Preferred $ Preferred Common c. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round…Lord Aguilar Corp. plans to declare and distribute a dividend in December 2019. There are 20,000 share of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. Required: Determine the amount of the dividends that should be paid to the preference and ordinary shareholders if the preference shares 1. Cumulative and participating and the total amount that the board of directors has specified for dividends is (a) P100,000, (b) P168,000, (c) P200,000
- The New Dance LLC. has 200 shares of oustanding; cumulative preferred stock that calls quarterly dividends of $5/share. New Dance LLC. has deferred paying a dividend for the last 5 quarters. Assuming that this LLC. wants to pay a dividend to its common stockholders, what is their total dollar$ that it must first pay to its preferred stockholders?ABC SAOG has in issue 2,000,000 ordinary shares of OMR 0.500 fully paid. On 31st Dec 2018 management board has decided to pay a dividend of 100 baisa on each ordinary share which was readily approved by the shareholders. The date of payment was 10th March 2019. During the year the company earned a profit after tax of OMR 200,000. The company paid the amount of dividends for the ordinary shareholders for the year 2019. What will be the Net Retained earnings after the payment of dividend to shareholders assuming that the company had opening Retained earnings on 1st January 2018 of OMR 800,000? a. OMR 1,000,000 b. OMR 600,000 c. OMR 800,000 d. OMR 300,000 The amount of ordinary dividend to be distributed to the shareholder is a. OMR 200,000 b. OMR 1,000,000 c. OMR 700,000 d. OMR 400,000a) Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. What is the ex-dividend date?b) You own 2,200 shares of Deltona Hardware. The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your required rate of return on this security is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today?c) Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?