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mezya [45]
3 years ago
11

Rebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. what is its effective annual

Business
1 answer:
Lilit [14]3 years ago
3 0
To solve for the effective annual rate of return:

Effective annual rate of return = (1+(quarterly dividend/preferred stock price))/periods per year)-1
Quarterly dividend = $1.00
Preferred stock price = $55.00
Periods per year = 4
EFF annual rate of return = (1+(1.00/55))/4-1
EFF annual rate of return = 7.47%
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Assume that you are a consultant to Lotte Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and
Eduardwww [97]

The cost of equity from retained earnings based on the DCF approach=9.44%

Explanation:

  • The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
  • For D1  = $0.67
  • For P0 = $27.50
  • For  g = 7.00%
  • Therefore, rs = \frac{D1}{PO} + g
  • The answer is =9.44%

8 0
3 years ago
Because costs and benefits are both subjective, a person's cost-benefit analysis will always be based on what?
Allisa [31]

Answer: his or her unique values and benefits

Explanation: I just got it right

4 0
3 years ago
Read 2 more answers
Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the
Tju [1.3M]

Answer:

$5.59

Explanation:

Calculation to determine the value of the entity multiple of Company X in Year 1

Using this formula

Entity multiple=Market value / EBITDA

Let plug in the formula

Entity multiple=$99,450/$17800

Entity multiple=$5.59

Therefore the value of the entity multiple of Company X in Year 1 will be $5.59

5 0
3 years ago
g The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoida
KIM [24]

Fruit Pie Inc. has three product lines—Strawberry, Cherry, and Apple. The following information is available:

                                         Strawberry     Cherry       Apple

Sales revenue                   $70,000​    $60,000​    $31,000​

Variable costs                    (20,000)     (15,000)     (11,000)

Contribution margin         $50,000​   $45,000​   $20,000

Fixed costs                        (20,000)       (5000)   (25,000)

Operating income (loss)  $30,000​  $40,000​      $(5000)

The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.

Group of answer choices

$25,000

$65,000

$11,000

$20,000

Answer:

Fruit Pie Inc.

Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.

= $65,000.

Explanation:

a) Data and Calculations:

                                        Strawberry     Cherry       Apple

Sales revenue                   $70,000​    $60,000​    $31,000​

Variable costs                    (20,000)     (15,000)     (11,000)

Contribution margin         $50,000​   $45,000​   $20,000

Fixed costs                        (20,000)       (5000)   (25,000)

Operating income (loss)  $30,000​  $40,000​      $(5000)

Income Statement after the Elimination of Apple:

                                        Strawberry     Cherry    Total

Sales revenue                   $70,000​    $60,000​  $130,000

Variable costs                    (20,000)     (15,000)    (35,000)

Contribution margin         $50,000​   $45,000​    $95,000

Fixed costs                        (20,000)       (5000)    (25,000)

Fixed costs (Apple's)                                             (25,000)

Rent income                                                           20,000

Operating income (loss)  $30,000​   $40,000​)  $65,000

7 0
3 years ago
Despite its vivid design, the website for Lolly's Bookstore did not seem to attract customers who lingered. In fact, most websit
Brilliant_brown [7]

Answer:

d. bounce rates

Explanation:

According to my research on web-page development and maintenance, I can say that based on the information provided within the question the owner needs to address the bounce rates. This term refers to the percentage of visitors to a particular website who navigate away from the site after viewing only one page. Which is what is currently happening with the customers that Lolly's Bookstore is receiving.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
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