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Wittaler [7]
3 years ago
14

Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a

constant annual dividend of $6.00 a share. What is the company’s cost of preferred stock, ?
Business
1 answer:
labwork [276]3 years ago
8 0

Answer:

the company’s cost of preferred stock is 10.53%.

Explanation:

given information:

perpetual preferred stock = $57.00

a constant annual dividend = $6.00

to determine the company’s cost of preferred stock we can use the following formula

cost of preferred stock = \frac{ annual dividend}{preferred stock}

                                   = \frac{6.00}{57.00}

                                   =10.53%

therefore, the company’s cost of preferred stock is 10.53%.

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Which of the following persons trade for their own account on the floor of an options exchange?
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Answer:

II. Registered Options Trader

Explanation:

A registered options trader is a type of floor trader that only trades securities for their own account. Registered options traders are not necessarily required to be market makers (large investment banks or other financial institutions that buy and sell securities and charge a spread).

3 0
2 years ago
BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea
siniylev [52]

Answer:

$70.83

Explanation:

The Gordon Growth model (or the dividend discount model) provides a simple formula for calculating the intrinsic price of stocks:

price of stocks = dividend / (required rate of return - growth rate)

price of stocks = $4.25 / (13% - 7%) = $4.25 / 6% = $70.83

4 0
3 years ago
Give examples of needs, wants, and demands that fedex customers demonstrate, differentiating these three concepts.
weeeeeb [17]

The needs are also what we call to be the requirements of the human beings that are essential and whose. These include, for the case of FedEx, the need for self-expression and also the need for the customer to be served in a means that makes him or her to fit in to a certain social class.

 

Wants are what we call to be temporary and hence changes regularly and are only directed by our surrounding towards reaching certain needs. For the case of FedEx, wants include customer’s want to have immediately needed materials and goods/products that are needed on very short notices.

 

<span>Demands happen when a customer is capable to sacrifice some money so as to be content with a need or want. These include for example the demand to be provided with export and import services, tracking packages etc.</span>

5 0
2 years ago
For each of these situations, determine the savings amount. Use the time value of money tables inChapter 1 (Exhibit 1–3) or in t
FromTheMoon [43]

Answer:

a. What would be the value of a savings account started with $700, earning 4 percent (compounded annually) after 10 years?

$700 * 1.480 = $1,036.00

b. Brenda Young desires to have $15,000 eight years from now for her daughter’s college fund. If she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.

$15,000 * 0.627 = $9,405

c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent (compounded annually)?

$1,800 * 113.28 = $203,904

8 0
3 years ago
Imagine that you are at a bank, ready to open your first bank account.
Sati [7]

Answer:

compared the services that different banks offer, and learned what they charge for them.

Explanation:

This is crucial as no one would want to be trapped in a bank or bank plans or services that doesn't work for him or her.

7 0
2 years ago
Read 2 more answers
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