The required rate of return on its preferred stock is found by using PW = D/R.
<u>Given Information</u>
Dividend per year = $2
Stock price = $20
Tax rate = 21%
Required rate of return (R) = ?
- The formula for use to derive the Required rate of return includes PV = D/R, where PW means Present worth, D = Dividend per year and R means Required rate of return.
PV = D/R
$20 = $2 / R
$20 * R = $2
R = $2 / $20
R = 0.1
R = 10%
Therefore,, the required rate of return on the preferred stock is 10%.
In conclusion, the required rate of return on its preferred stock is found by using PW = D/R.
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Answer:
Part a
Debit : Cash $9,000
Credit : Service Revenue $9,000
Part b
Debit : Prepaid Insurance $3,240
Credit : Cash $3,240
Part c
Debit : Equipment $12,000
Credit : Cash $12,000
Part d
Debit : Cash $14,000
Credit : Loan Payable $14,000
Explanation:
Step 1 : Identify the Accounts affected in each and every transaction.
Step 2: Then determine if this Account is increasing or decreasing.
Step 3 :The journal entries have been prepared above.
Answer: Best prospects list
Explanation: The best prospects list is usually issued to potential exporters by the International Trade Organization which serves functions such as facilitating trade operations between countries by eliminating several trading issues such as negotiating and reducing trade tariff, regulating restrictive policies and also providing useful information necessary for successful trading to traders.
The provision of best prospects list offers firsthand information to potential traders about available and certified markets and distributor information which could facilitate ease of trading.
I will create a combination of functional and project-based organizational structures. I have selected the combination due to the following rationale.
- There are different types and categories of iPhone applications. So, the development of each application is a project. Accordingly, competent professionals will be used and they will move from one project to another project.
- Selling of applications as well as taking care of HR operational aspects of the business will require people with expertise in these functional areas also. So, getting good sales as well as HR retention is the top priority for the business.
- A combination of these two structures will create a mix of back end and front end without any departmental inclination. So, the company will succeed.
Opting for other structures will either focus on applications or sales. But, it will be ineffective as sales will not happen without applications and applications alone cannot generate good sales without proper marketing.
Besides, there can be role confusion and conflict of interest with other organizational structure such as line only or staff only structures. Even, the selection of project-only or functional-only organizational structures will create problems and employee turnover will also increase.
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