Blink, inc. has 1,000 shares of $10 par, 5% preferred stock, and 20,000 shares of $10 par common stock issued and outstanding. if the board of directors authorizes a $20,000 dividend, the payment to common shareholders will total $

The answer is : The payment to common shareholders will total $19,500

Explanation:

Because preferred share has priority to receive dividend over common shares, the amount of dividend declaration must fulfill the firm's commitment to its preferred shareholders before the residual amount may be distributed among common shareholders.

Amount of dividend needs to be paid to preferred share holders = Number of share x Par value per preferred share x % dividend = 1,000 x 10 x 5% = $500.

The residual amount of dividend declaration which will go to common shareholders = 20,000 - 500 = $19,500.

=> Thus, the answer is $19,500.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

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