The interest rate that determines the amount of cash interest the borrower pays and the investor receives each year is called the ________
A) amortization rate
B) market interest rate
C) stated interest rate
D) discounting rate
C
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Colorful, Inc. was incorporated on January 1, 2016. Colorful issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with a 12% dividend rate. Colorful has not paid any dividends yet. In 2019, Colorful had its first profitable year, and on December 31, 2019, Colorful declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders?
A) $9600 B) $38,400 C) $5600 D) $44,000
Identify and describe the two balancing sections of the statement of changes in financial position.
What will be an ideal response?
Ziker Golf Company is evaluating a capital budgeting project that has a higher risk than the average risk of its existing assets. When evaluating projects that are riskier than average, Ziker normally adjusts its required rate of return by 4 percent. Ziker requires a 12 percent return on average-risk projects. What required rate of return should Ziker use to compute the net present value (NPV) of the risky project it is currently evaluating?
A. 8% B. 12% C. 16% D. 10% E. 48%
Make sure your business is run in an ethical manner by ________.
A. keeping accurate records and using financial controls B. never taking company profits just to pay yourself C. creating an advisory board D. All of these.