Preferred stock

Steepest ascent or descent, method of, 403-405 Stocks, preferred and common, return on, 248-249... 

Preferred stock has a preference over other shares regarding dividends and/or the distribution of assets. Some preferred stock is called cumulative, which means that if in any given year the company does not pay dividends, the unpaid dividends accumulate, and when these obligations are paid, the holders receive of this stock dividends before the holders of common stock. Preferred stockholders do not normally have a voice in company affairs or voting rights unless the company fails to pay them dividends. The preferred stock is carried on the books at a stated par value. 

Consider invested capital, another term necessary to find ROIC. First remember that operating assets consist of receivables, inventory, and PPE, while operating liabilities are noninterest bearing and consist of accounts payable, accrued expenses (such as salaries), and income taxes payable. In addition, equity consists of common stock, preferred stock, and retained earnings. Using a balance sheet, Table 5.2 provides an example of how invested capital is found. 

If a sample of the anhydrous salt is taken from stock, it should preferably be melted, allowed to cool, and then pulverised. 

Machining costs (labor and overhead) in the United States have an estimated value of > 300 x 10 /yr. The cost of labor and overhead for machining is based on the estimated number of total metal-cutting machine tools in various metal-cutting industries (1). This value does not take into account the cost of raw stock (work material), cutting tools, and many other support faciUties. An estimated breakdown of cutting tool costs is given in Table 13 (172). Because of the competitive nature of these industries, most prefer to keep cost information proprietary. 

These universal concentrates are preferred if they can be used, because inventorying costs can be reduced it is not necessary to stock different concentrates for different colorants. In some performance polymers this concept is not appHcable because the universal vehicles have a negative effect on weathering, transparency, or processing performance. 

Capital Investment. Erom the viewpoint of a project, all of the capital that must be raised is external capital. Equity capital is the ownership capital, eg, common and preferred stocks or retained cash, whereas debt capital consists of bonds, mortgages, debentures, and loans. Nearly all investment involves a mixture of both types so as to maximize the return on investment (21). The debt ratio (debt/total capital) for the chemical industry is typically over 30%. Because financial details are not well known during the preliminary phases of project analysis, the investment is viewed simply as the total capital that must be expended to design and build the project. 

The difference between equity financing and debt financing is not always clear-cut. For example, preferred stock can be classified as stockholders equity or debt, depending on who is doing the financial analysis. 

Equity Financing Typically, the company balance sheet will show the stockholders equity and list the preferred stock, common stock, and retained earnings as in Table 9-23. 

Preferred stock is often used as an alternative to debt when companies do not wish to issue additional common stock or to incur the fixed interest charges required to finance debt. Preferred stockholders are not normally allowed to vote for the board of direciors. They have the right to receive fixed amounts of dividends before common stockholders are paid any dividends. However, a company does not have to pay dividends. The board of directors may decide to pay small or no dividends in a particular year. Holders of cumulative preferred stock... 

Both common and preferred stocks normally have a par, or nominal, value. In the case of common stock, the market value at the time of issue usually differs from the par value. Stock can be issued either at a premium or at a discount, depending on prevailing economic conditions and the strength of the company. The difference between the actual amount paid and the par value is listed in the stockholders -equity section of the balance sheet, as shown in Table 9-23. The issuance of stock at a premium or a discount is done to protect existing stockholders. 

In the case of preferred stock, the par value has more meaning than with common stock, since it is the amount due preferred stockholders if the company goes into liquidation, provided that this is a condition of issue. 

The advantage of using common stock to finance assets is that it does not incur nxed interest charges. Furthermore, there is no maturity date, as there is with all loans and most preference issues. Common stock can often be issued more easily than debt can be financed. However, the flotation costs of common stock can be quite high, especially when stock values are depressed, so that large discounts for the stock are needed to induce purchase. 

A financial analyst looking at a company from a potential common stockholders point of view is hkely to classify preferred stock as debt. In contrast, bondholders and general creditors are likely to regard preferred stock as additional eqmty. Since preferred stock is a hybrid type of security, it may be issued by a company whose management is divided over the question of whether to use equity or debt to finance additional assets. However, preferred stock does have the disadvantage that the dividends are not allowed as a tax-deductible expense. 

Row 3 in Table 9-24 is the return on equity (ROE) of Eq. (9-130). In this case, the net worth is the tangible net worth representing the sum of the preferred and common stocks and the surplus and undistributed profits or retained earnings, less any intangible items such as goodwill, etc. 

Test Piece The size and the shape of specimens will vaiy with the purpose of the test, nature of the material, and apparatus used. A large surlace-to-mass ratio and a small ratio of edge area to total area are desirable. These ratios can be achieved through the use of rectangular or circular specimens of minimum thickness. Circular specimens should be cut preferably from sheet and not bar stock to minimize the exposed end grain. 

Equity financing comes 100% from the owners. They are in business to take risks but must realize a higher retuni to make up for this higher risk. Several ways are open to get equity funds. An asset may be sold, common or preferred stock may be sold, or retained earnings may be accumulated. Whatever the source, management must make sure the project is feasible, will pay the debt, and will make a profit. 

Shafts are made of material ranging from medium carbon to low alloy steel and are usually heat treated. Shafts were originally made of forgings for the compressors in process service. But because of the availability ot high quality material, hot rolled bar stock has been used for shafts up to S inches in diameter. Bar stock shafts are given the same heat treatment and quality control as forgings. Many of the process users prefer a low alloy, chrome-moly-nickel material for shafting, particularly for compressors in critical service. 

One limitation of epoxide moulding compositions is their short shelf life (typically 1-3 months), which necessitates strict stock control. The compounds may be compression, transfer or injection moulded, although compression moulding is preferred for long-fibre grades. 

Minimize stocks and segregate from other chemicals and work areas. Where appropriate, keep samples dilute or damp and avoid formation of large crystals when practicable. Add stabilizers if possible, e.g. to vinyl monomers. Store in specially-designed, well-labelled containers in No Smoking areas, preferably in several small containers rather than one large container. Where relevant, store in dark and under chilled conditions, except where this causes pure material to separate from stabilizer (e.g. acrylic acid). 

Effect of Catalyst The catalysts used in hydrotreating are molybdena on alumina, cobalt molybdate on alumina, nickel molybdate on alumina or nickel tungstate. Which catalyst is used depends on the particular application. Cobalt molybdate catalyst is generally used when sulfur removal is the primary interest. The nickel catalysts find application in the treating of cracked stocks for olefin or aromatic saturation. One preferred application for molybdena catalyst is sweetening, (removal of mercaptans). The molybdena on alumina catalyst is also preferred for reducing the carbon residue of heating oils. 

Starr, 1969 approached this by investigating the "revealed preferences exhibited in society ls the result of trial and error. (Similar to the "efficient market theory" in the stock market.) Stan-conjectured that the risk of death from disease appears to determine a level of acceptable voluntary risk but that society requires a much lower level for involuntary risk. He noted that individuals seem to accept a much higher risk (by about 1000 times) if it is voluntary, e.g., sky-diving or mountain climbing, than if it is imposed, such as electric power or commercial air travel, by a correlating with the perceived benefit. From this study, a "law" of acceptable risk was found concluding that risk acceptability is proportional cube of the benefits. Figure 1.4.4-1 from Starr, 1972 shows these relationships. One aspect of revealed preferences is that these preferences do not necessarily remain constant (Starr et al., 1976). In Starr et al., 1976, it is shown that while nuclear power has the least risk of those activities compared, it also has the least perceived benefit. Clearly the public thinks that... 

Vorrugs-. preferred, preferential, -aktien, f.pl. (shares of) preferred stock, -milch, /. special milk, -richtung, /. preferred direction. 

Try 1/ -inch (i.d. = 1.61), since 114-inch (i.d. = 1.38) is not stocked in every plant. If it is an acceptable plant pipe size, then it should be considered and checked, as it would probably be as good pressure drop-wise as the 114-inch. The support of 114-inch pipe may require shorter support spans than the 114-inch. Most plants prefer a minimum of 114-inch valves on pressure vessels, tanks, etc. The valves at the vessels should be 114 inch even though the pipe might be VA inch The control valve system of gate and globe valves could very well be lA inch. For this example, use 114-inch pipe, Schedule 40 ... 

It is helpful to the manufecturer for the purchaser to specify any conditions that are peculiar to the plant s warehouse stock of tubes or process controlled preferences ... 

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