Determine the dividends per share

Assignment Help Accounting Basics
Reference no: EM132094431

Question - 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 stock-holders and preferred stockholders in 2011, 2012, 2013, and 2014.

2. Perform the same computations, with the assumption that the preferred stock was noncumulative.

3. 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. How are cumulative preferred stock and noncumulative preferred stock similar to long-term bonds? How do they differ from long-term bonds?

Reference no: EM132094431

Questions Cloud

What is D company return on assets : D company's net income and net sales are $25,000 and $1,150,000. respectively, What is D company's return on assets
Meaning-making forum is relatively simple concept : The notion of a meaning-making forum is a relatively simple concept, which is akin to managing from the bottom up in organizations.
Communications channel during crisis : Search the Internet for a sport or fitness organization Web site that is being used as a communications channel during a crisis.
Examine international business ethics issues : Examine international business ethics issues, specifically related to corruption, bribery and practice using ethical concepts and theories.
Determine the dividends per share : Determine the dividends per share and the total dividends paid to common stock-holders and preferred stockholders in 2011, 2012, 2013, and 2014
Advise jake as to the tax implications : Advise Jake as to the tax implications of each of these 10 items and the impact it will have on his tax return. Students should quote sections of law
Synergy portfolio strategies-organizational design challenge : Explain these in detail with real world examples The Value-Adding Conglomerates," "Synergy Portfolio Strategies," "Organizational Design Challenges"
Explain your reasoning based on what you have learned : Articulate your points of agreement or disagreement and explain your reasoning based on what you have learned throughout the course.
Define ethical dimension of the risk-benefit calculation : The risk-benefit calculation for any drug assumes a correct diagnosis of the disorder. Many investigators and clinicians feel the current epidemic of child.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the entry required on short books

On May 1, 2015 Short Company has an immediate need for cash and decides to factor $1,700,000 of its receivables to IBC Inc., a financial institution.

  Different between current and a contingent liability

Distinguish between a current liability and a contingent liability. Give two examples of each type.

  Prepare summary journal entries for use of direct materials

Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer.

  Past or present public or political figure

Write a 700- to 1,050-word paper in which you select a past or present public or political figure, as long as he or she is not mentioned in the readings.

  What is an example of a significant accounting estimate

what is an example of a significant accounting estimate? what is the importance of these estimates? how do ethics play

  Discuss the acquisition of a fixed asset as an expenditure

Which of the following funds of a governmental unit records the acquisition of a fixed asset as an expenditure rather than as an asset?

  Describe methodology for the direct and indirect cash flow

Describe methodology for the direct and indirect cash flow methods, including the major cash flow categories of operating, investing, and financing activities

  Question regarding the balance sheet

The balance sheet is useful for analyzing all of the following except _______________.

  Ratio computations and effect of transactions

Presented below is information related to Carver Inc.

  Determine the present value of the pension obligation

determine the present value of the pension obligation, the Personnel Department and an actuary from an insurance company,the controller develops

  Give three examples of other specialized systems

Give three examples of other specialized systems.

  Prepare a three-column comparative income statement

A new retail store has offered to buy 8,300 of its skateboards for $59 per unit. The store is in a different market from Calla's regular customers and it would not affect regular sales. A study of its costs in anticipation of this additional busin..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd