What is the minimum amount that the company should pay

Assignment Help Accounting Basics
Reference no: EM13556122

Buckskin Corporation has 10,000 shares of $100 par, 5% noncumulative preferred stock authorized, of which 5,000 shares have been outstanding since the corporation's formation in 1998. Buckskin also has had 100,000 shares of $10 par value common stock issued and outstanding since 1998.

Up until 2011, Buckskin paid the regular cash dividend on the preferred stock plus a $1 per share cash dividend on the common stock each year. In 2011, however, Buckskin was unable to pay any dividends due to its losses and its poor cash flow. By the end of 2012, Buckskin was slightly profitable and paid a total of only $10,000 of dividends. Now, in planning for its cash flows for the remainder of 2013, the board of directors seeks to pay a large enough dividend to the common shareholders to make up for the "missed" dividends for 2011 and 2012 and give them at least a $1 per share dividend for 2013.

What is the minimum amount that the company should pay in order to achieve its objectives?

Reference no: EM13556122

Questions Cloud

Evaluate the acceleration of the electron : An electron moves through a uniform electric field E = (2.50 i + 5.00 j) V/m and a uniform magnetic field B = (0.400 k) T. Determine the acceleration of the electron
Explain what is the mass of co2 found : The solubility of CO2 in water at 25C at 1 atm is 0.034mol/L. What is the mass of CO2 found in a 355 ml can of soda at 25 C, assuming the manufacturer used a pressure of 2.O atm of CO2 to carbonate the beverage.
Uniform wooden bar with square crosssection floats on water : A long uniform wooden bar with square crosssection floats on water. Show that , if the relativedensity of wood is 0.50, the bar will float with all fourfaces making an angle of 45 degrees with the water surface.
Evaluate the magnification of the image formed by the lens : An object is placed to the left of a convex lens and on the optical axis. evaluate the magnification of the image formed by the lens
What is the minimum amount that the company should pay : What is the minimum amount that the company should pay in order to achieve its objectives - Buckskin also has had 100,000 shares of $10 par value common stock issued and outstanding since 1998.
Explain is the world adiabatic or isothermal and why : Is the world adiabatic or isothermal and why. Is the world at constant pressure or constant volume and why.
What angle does the rope make with the horizontal : A wooden block is pulled 12 m across a frictionless surface using a rope. What angle does the rope make with the horizontal
Evaluate the position of the image formed by the lens : A small object is placed to the left of a convex lens and on the optical axis. evaluate the position of the image formed by the lens
Explain what gas is made when na meets h2o : At MIT, there is a winter-time student tradition of taking a large quantity (1 kg) of sodium metal and tossing it into the Charles river, where it explodes, gets tossed back into the air, falls again and explodes etc. over and over again until all..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Sales for october november and december are expected to be

sales for october november and december are expected to be 200000 180000 and 220000 respectively for the gurumai

  Amount of liability for compensation

At December 31, 2009, M's unadjusted balance of liability for compensated absences was $30,000. M estimated that there were 200 vacation days available at December 31, 2009. M's employees earn an average of $150 per day. In its December 31, 2009, ..

  Adjusting entry include a credit to allowance account

Chen Company's account balances at December 31, 2007 for Accounts Receivable and the Allowance for Doubtful Accounts are $320,000 debit and $600 credit. Sales during 2007 were $900,000. It is estimated that 1% of sales will be uncollectible. The a..

  Allocation of manufacturing overhead

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000.

  Budgetary journal entry at the beginning of fiscal

Actual revenues are equal to estimated revenues, and actual expenditures are $7,000 less than appropriations.

  During the month of march wang company sold merchandise on

during the month of march wang company sold merchandise on account for 9100. the merchandise had cost wang 4900. which

  The cost per pound of raw material is 2 and 70 of all

rolen inc. is in the process of preparing the fourth quarter budget for 2010 and the following data have been assembled

  Question 1 you are designing a grocery delivery business

question 1 you are designing a grocery delivery business. via the internet your company will offer staples and frozen

  Approach for professional sports franchises

Why have mutually unperformed executory contracts traditionally been excluded from financial statements? Can this practice be justified in terms of asset and liability definitions? How relevant is this approach for professional sports franchises?

  Continuous cycle-managerial accounting

Define planning, organizing, and controlling and then explain why the phases of planning, organizing, and controlling are referred to as a continuous cycle?

  What is the value of t capital if t is acquired by f

What is the value of T's capital if T is acquired by F Corporation?

  Back mountain industries bmi has two divisions east and

back mountain industries bmi has two divisions east and west. bmi has a cost-of-capital of 16.1. selected financial

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