Rensing. Inc.. has 20.000 shares of 8%. $30 par value preference shares and 120,000 of ordinary...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rensing. Inc.. has 20.000 shares of 8%. $30 par value preference shares and 120,000 of ordinary shares outstanding, having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018. As of December 31, 2019, it is desired to distribute $460,000 in dividends. Instructions a) How much will the preference and ordinary shareholders receive if the company declared and paid $460,000 in cash dividends if the preference is cumulative and participating in excess of 12%. b) How much will the preference and ordinary shareholders receive if the company declared and paid $294,000 in dividends and the preference is cumulative and participating up to 12% total. Rensing. Inc.. has 20.000 shares of 8%. $30 par value preference shares and 120,000 of ordinary shares outstanding, having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018. As of December 31, 2019, it is desired to distribute $460,000 in dividends. Instructions a) How much will the preference and ordinary shareholders receive if the company declared and paid $460,000 in cash dividends if the preference is cumulative and participating in excess of 12%. b) How much will the preference and ordinary shareholders receive if the company declared and paid $294,000 in dividends and the preference is cumulative and participating up to 12% total.
Expert Answer:
Answer rating: 100% (QA)
a Preference shareholders will receive 120000 in dividends and ordinary sharehol... View the full answer
Posted Date:
Students also viewed these accounting questions
-
It is desired to produce an aligned carbon fiber-epoxy matrix composite having a longitudinal tensile strength of 750 MPa (109,000 psi). Calculate the volume fraction of fibers necessary if (1) the...
-
It is desired to simulate flow past a ridge or bump by using a streamline above the flow over a cylinder, as shown in Fig. P8.50. The bump is to be a/2 high, as shown. What is the proper elevation h...
-
It is desired to monitor project completion times by analysts in a consulting company. The magnitude and complexity of the project influence the completion time. It is also believed that the...
-
At the beginning of the current tennis season, on April 1, 2024, Kicked-Back Tennis Shops inventory consisted of 50 tennis racquets at a cost of $40 each. Kicked-Back uses a perpetual inventory...
-
What factors justify stocks selling at higher relative valuation multiples (or lower yields) than comparison firms or the industry average?
-
On October 31, 2014, Blossom Floral Supply had a $ 180,000 debit balance in Accounts Receivable and a $ 7,200 credit balance in Allowance for Bad Debts. During November, Blossom made the following...
-
Prove that \(B(x ; n, p)=1-B(n-x-1 ; n, 1-p)\).
-
Post the journal entries prepared in E 3-31 to T-accounts, and determine the final balance for each account. (Assume all beginning account balances are zero.) Data from E3-13 July 2 Received $320,000...
-
A $1,000 par value bond has an 8% coupon rate (paid annually). It has 10 years remaining to maturity. If the bond's current price is $935.82, what should be the YTM of this bond?
-
Consider the following scenario: A school is attempting to develop a policy manual. It wants to make aggressive behavior an expellable offense. It also wants to acknowledge bad behavior as a...
-
A bond of Visador Corporation pays $90 in annual interest, with a $1,000 par value. The bonds mature in 25 years. The market's required yield to maturity on a comparable-risk bond is 8.5 percent....
-
For breaching their duty of care, directors may be liable to the corporation. (True/False)
-
Dave is an accountant hired by Eagle Equipment Corporation to act as its agent. In acting as an agent for Eagle, Dave is expected to use a. reasonable diligence and skill. b. the degree of skill a...
-
Paul rents an office from Diego for an eighteen-month term. Their lease a. must be oral to be enforceable. b. must be in writing to be enforceable. c. is enforceable whether or not it is in writing....
-
Tenishia believes that she has been discriminated against on the job because she is a woman. She attempts to resolve the dispute with her employer, who decides that her claim has no basis. Tenishias...
-
Bree is an officer of Chic Petites Corporation. Like most corporate officers, Bree a. can act as Chics agent. b. can participate in managing Chics day-to-day operations. c. must carry out the duties...
-
James is a U.S. citizen, and he will receive 1,991,000 MalaysianRinggit (MYR) from a company in a year. The interest rate inMalaysia is 8% p.a. and the interest rate in the United States is5% p.a.. 2...
-
Vince, Inc. has developed and patented a new laser disc reading device that will be marketed internationally. Which of the following factors should Vince consider in pricing the device? I. Quality of...
-
An incident shock wave with wave angle \(=30^{\circ}\) impinges on a straight wall. If the upstream flow properties are \(M_{1}=2.8, p_{1}=1 \mathrm{~atm}\), and \(T_{1}=300 \mathrm{~K}\), calculate...
-
Consider a streamline with the properties \(M_{1}=4.0\) and \(p_{1}=1 \mathrm{~atm}\). Consider also the following two different shock structures encountered by such a streamline: (a) a single normal...
-
Consider a supersonic flow with an upstream Mach number of 4 and pressure of \(1 \mathrm{~atm}\). This flow is first expanded around an expansion corner with \(\theta=15^{\circ}\), and then...
Study smarter with the SolutionInn App