Reference no: EM13914209
Avaya Corporation had the following stock outstanding from 2011 through 2014:
Preferred stock: $100 par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding
Common stock: $10 par value, 100,000 shares authorized, issued, and outstanding
The company paid $30,000, $30,000, $94,000, and $130,000 in dividends during 2011, 2012, 2013, and 2014, respectively. The market price per common share was $7.25 and $8.00 per share at the end of years 2013 and 2014, respectively.
Required:
1. Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in 2011, 2012, 2013, and 2014.
2. Perform the same computations, with the assumption that the preferred stock was noncumulative.
3. Business application- Calculate the 2013 and 2014 dividend yield for common stock, using the dividends per share computed in requirement 2. (Round to the nearest tenth of a percent.)
4. AccCounting Connection- How are cumulative preferred stock and noncumulative preferred stock similar to long-term bonds? How do they differ from long- term bonds?
|
Child tax credit
: What is their child tax credit
|
|
Market rate of interest
: Suppose you have an offer of $200,000 to sell your house this year. The market rate of interest is 10%. You expect to be able to sell your house next year for $230,000.We should use the nonrenewable resources since we will leave more capital goods fo..
|
|
Capital and retained earnings
: Define the terms paid-in-capital and retained earnings
|
|
What is the determinant
: If A and B are 3 × 3 matrices with det(A) = 4 and det(B) = 1. What is the determinant of C = 2AT A-1BA
|
|
Determine dividends per share paid `to common stockholders
: Determine the dividends per share and the total dividends paid to common stockholders and preferred stockholders in 2011, 2012, 2013, and 2014.
|
|
Consider the following brief descriptions
: Consider the following brief descriptions of four companies, listed alphabetically, from different industries.
|
|
Starbucks’s marketing department
: If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.95, how will the prospect of an economic bust (expected to decrease consumers’ incomes by 3 percent over the next year) impact the quantity of coffee..
|
|
Merchandising transactions of blink company
: Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.
|
|
Calculate the new breakeven point
: An increase in the bookstore price of $30 to $40 while keeping the bookstore margin at 30%. Calculate the new breakeven point.Which option would you recommend that Right Publishers agree to? Why?
|