Inkle, Inc has $200,000 of 10% bonds outstanding (which pay $20,000 interest) and $100,000 of 12% preferred stock (which pay $12,000 dividends). Assume that Inkle's earnings in the upcoming year will be either $50,000 or $100,000

Given these two possibilities, common stockholders' share of earnings will be either ________ or ________.
A)

$38,000; $88,000
B)

$30,000; $68,000
C)

$18,000; $68,000
D)

$18,000; $88,000


C

Business

You might also like to view...

Use a slash when a season or a time period extends beyond _______________

a. the validity of the presented information b. a single year c. the current year d. the immediate future

Business

An increase in a firm's expected growth rate would cause its required rate of return to

A. increase. B. decrease. C. fluctuate less than before. D. fluctuate more than before. E. possibly increase, possibly decrease, or possibly remain constant.

Business

Notice of a shareholders' meeting may not be waived

Indicate whether the statement is true or false

Business

A ________ is a formatted message that passes through networks.

A. protocol B. packet C. SLACC D. codec E. package

Business