Earnings available to common shareholders are defined as net profitsSelect one:a. after taxes.b. after taxes minus preferred dividends.c. after taxes minus common dividends.d. before taxes.

Answers

Answer 1

Answer:

Answer:

The correct answer is b. after taxes minus preferred dividends.

Explanation:

Net profit:Add all the revenues of the firm and deduct all the expenses of the firm. If the amount come in positive, the firm earns profit else suffered loss.

In mathematically,

Net profit = Sales revenue - all expenses

The earning which is available to shareholders is net profit after paying preference dividend to preference shareholders.

As first we have to pay the dividend to preference shareholders then we distribute the income to equity shareholders.

In mathematically,

EBIT - taxes - Preferred dividend

Hence, the correct option is b. After taxes minus preferred dividends.

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If denise wants to know how much the jobs in her gym are worth in comparison to one another, she should doa.job specification analysis wage and salary survey job description analysis job evaluation

Identify which of the objectives of business writing is not being met in the following message. I see that there appears to be an absolutely unfamiliar potential client requesting to converse with you in the upcoming afternoon interval. Would you prefer that I reject his request because you are already experiencing an overload of professional work demands?

Answers

Explanation:

There is no clear purposeful in the business writing above.

For it to be a message that effectively communicates the main information that you want to transmit, it is important that the message is written in the most objective and accurate way possible, so that there is no communication noise and so that the message reaches the receiver and the message is understood. central purpose of the message effectively.

Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.7 % per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8 %?

Answers

Answer:

what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8 %?

$ 13,36

Explanation:

First it's necessary to find the present value of the annual dividend paid during the next 6 years, which is calculate by the formula of the Present Value.

PV = Dt / (1+r)^t , it means that each Dividend at the year "t" will be value with the rate r calculated a this same moment "t".

Will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year.

Year 1

0,61 = Div

1,09 = (1+0,88)^1

0,56 = Div/1,09

Year 2

0,69 = Div Year 1(0,61) * 1,129, because increase at 12,9% by year

1,18 = (1+0,88)^2

0,58 = Div/1,18

Year 3

0,78 = Div Year 2(0,69) * 1,129, because increase at 12,9% by year

1,29 = (1+0,88)^3

0,60 = Div/1,18

Year 4

0,88 = Div Year 3(0,78) * 1,129, because increase at 12,9% by year

1,24 = (1+0,88)^4

0,63 = Div/1,24

Year 5

0,99 = Div Year 4(0,88) * 1,129, because increase at 12,9% by year

1,52 = (1+0,88)^5

0,65 = Div/1,52

Year 6

1,12 = Div Year 5(0,99) * 1,129, because increase at 12,9% by year

1,66 = (1+0,88)^6

0,67 = Div/1,66

PV of 6 Years= 0,56 + 0,58 + 0,60 + 0,63 + 0,65 + 0,67 = $3,70

Thereafter, growth will level off at 1.7 % per year.

To this second part the model indicates that de dividend is calculated by = Dividend /(Rate-Growth) , which means that if a dividend grows forever, we applied the perpetuity formula where dividend growth it's applied as negative to the discount rate.

Year 6

1,14 = Div Year 6(1,12) * 1,017, thereafter will growth at 1,7% by year.

7,1% = (8,8%-1-7%) Discount rate less growth of dividend.

16,03 = Div/0,071 = In this case we use the rate not the 1+rate.

This value it's calculated at the moment of Year 7, we need to apply the Present Value to calculate the actual value, which is:

16,03 = Perpetuity calculated before until year 6.

1,66 = Discount Rate applied this year.

9,66 = Present Value of the Dividen which grows forever at 1,7%

TOTAL Value of Share = PV of 6 Years + PV Perpetuity =

$3,70 + $9,66=$13,36

Presented below are two independent situations. 1. On January 1, 2017, Monty Company issued $216,000 of 8%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2017, Flounder Company issued $168,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31.

Answers

Answer:

MONTY

cash 216,000

bond payable 216,000

interest expense 4,320

cash 4,320

interest expense 4,320

interest payable 4,320

Flounder

cash 178,080

bond payable 168,000

interest payable 10,080

cash 10,080

interest expense 10,080

interest payable 10,080

Explanation:

Monty

issuance will receive the same amount as face value, as it was issued at par

July 1st payment: 216,000 x 8%/4 = 4,320

we divide by 4 as the payment are quarterly and there are 4 quarter per year

we recognize this interest expense and pay it.

accrued interest at December 31th:

we will recognize the interest accrued form october 1st to december 31th

we put a payable account as there is no cash payment

Flounder

issuance will receive the same amount as face value, and the interest accrued from Jan 1st to June 30th as the bonds were issued with delay

168,00 x 12%/2 = 10,080 interest payable

(the payment are semiannually so we split the rate in two)

The sum of these payable and the face value will be the cash proceeds to Flounder

july 1st payment

we "pay" the interest agains the payable account

accrued interest at December 31th:

168,00 x 12%/2 = 10,080 interest expense

we will recognize the nterest accrued form July 1st to december 31th

we put a payable account as there is no cash payment

the greatest constraint for a project is the . group of answer choices the schedule for the project the level of quality to be produced availability of the right resources at the right time cash flow for the organization

Answers

The most significant constraint for a project is the availability of the right resources at the right time.

What are Resources?

A resource is an actual thing that people need and appreciate, including air, water, and property. A resource is classified as renewable or nonrenewable when it can replace at the pace it is utilized up, whereas an exhaustible resource seems to have a limited quantity. Timber, wind, and solar power are examples of renewable energy sources, whereas gas and coal are examples of non-renewable resources.

A resource can be Natural and Human-made. Also, natural resources can be .

1. Biotic and Abiotic

2. Renewable and Non-renewable

3. Potential, developed, and stock

To know more about Resources click here

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During the first five years of operations, Red Raider consulting reports net income and pays dividends as follows.Year Net Income Dividends Retained Earnings1 $1200 $500 2 1700 500 3 2100 1000 4 3200 1000 5 4400 1000 Calculate the balance of retained earnings at the end of each year.

Answers

Answer:

Please refer to the below for the retained earnings at each year end

Explanation:

Retained earnings refers to the earnings available to a business enterprise after the deduction or payment of dividend.

Retained earnings = Beginning balance + Net income for the year - Dividends paid

Year 1

Retained earnings = 0 + 1,200 - 500

= $700

Year 2

Retained earnings = 700 + 1700 - 500

= $1,900

Year 3

Retained earnings = 1,900 + 2,100 - 1,000

= $3,000

Year 4

Retained earnings = 3,000 + 3,200 - 1,000

= $5,200

Year 5

Retained earnings = 5,200 + 4,400 - 1,000

= $8,600

OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.2 million. Interest is payable at maturity.Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:

Interest rate Fiscal year-end Interest expense
12% December 31
10% September 30
9% October 31
6% January 31

Answers

Answer:

In accrual basis accounting, expenses are recorded in the period when their matching revenues are obtained.

In this case, even if the full interest will be paid at maturity, interest expense will still be recorded in each period according to the information that we are given in the question.

Interest expense to be recorded by December 31

5,200,000 * 0.12 = 624,000 / 2 = 312,000

Interest expense to be recorded by September 30

5,200,000 * 0.10 = 520,000 * 3/12 = 130,000

Interest expense to be recorded by October 31

5,200,000 * 0.09 = 468,000 * 4/12 = 156,000

Interest expense to be recorded by January 31

5,200,000 * 0.06 = 312,000 * 7/12 = 182,000

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ak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Balance on 3/1 Job 33 $ 7,500 Job 34 6,000 $ 13,500 Source documents revealed the following during March: Materials Requisitions Forms Labor Time Tickets Status of Job at Month-End Job 33 $ 3,500 $ 6,500 Completed and sold Job 34 6,000 7,800 Completed, but not sold Job 35 4,200 3,250 In process Indirect 1,300 2,140 $ 15,000 $ 19,690 The company applies overhead to products at a rate of 150 percent of direct labor cost. Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.

A stock with a beta of 0.8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage points below expectations, what is your best guess as to the rate of return on the stock?

Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Store Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Local Department Store 15 102 Across Town 30 87 Neighboring City 60 63 Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Opportunity Cost of Time Price of a Suit Total Cost(Dollars) (Dollars per suit) (Dollars)Local Department Store 103 Across Town 88 Neighboring City 63 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

A company's sales forecast would likely consider all of the following factors except: advertising and pricing policies. top management's attitude toward decentralized operating structures. general economic and industry trends. competition. political and legal events.