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dmitriy555 [2]
3 years ago
10

LTM, Inc. has an issue of preferred stock whose par value is $1,000. The preferred stock pays a 4.5% dividend. If investors requ

ire a 5.5% rate of return for these shares, what price should the preferred stock sell for?
Business
1 answer:
Elena L [17]3 years ago
7 0

Answer:

Explanation:

return on preferred stock (rp) = Dividend/ Current price

rate of return  = 5.5% or 0.055 as a decimal

Dividend amount = dividend rate * par value ;

Dividend amount = 4.5% * 1000 = $45

Current price = ?

Next, plug the numbers to the formula above to find Price;

0.055 = 45/ Price

0.055Price = 45

Divide both sides by 0.055;

Price = 45/ 0.055

Price = $818.18

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Anestetic [448]

Answer:

Inventory Management Report

Explanation:

Inventory management is the most essential part of every organization where an organization manages its raw material, check their availability of a product, back storage so that company doesn't get a shortage of its product and the quantities. On the other hand inventory management report indicates the strong decision variables are set by the buyers.

Therefore from the above explanation, the correct answer is an inventory management report.

4 0
3 years ago
Giani and Maria are attempting to purchase a house in a new neighborhood. Maria is four months pregnant with their first child,
bija089 [108]

Answer:

The answer is "ECOA".

Explanation:

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8 0
3 years ago
If $1,000,000 of 9% bonds are issued at 102 3/4, the amount of cash received from the sale is
Marina86 [1]

Answer:

b.$1,027,500

Explanation:

First we need to find the number of bonds issued so we will divide 1,000,000 by 100 as we assume 100 is the face value. 1,000,000/100=10,000

Now we will multiply the number of bonds by the issue price in order to find the amount of cash received.

10,000*102.75=1,027,500

6 0
3 years ago
A chain of video stores sells three different brands of DVD players. Of its DVD player sales, 50% are brand 1 (the least expensi
slava [35]

Answer: 60.98%

Explanation:

Probability that it is a brand 1 DVD player that needs repair work = Probability of brand 1 DVD needing repairs / Probability that a DVD player will need fixing while under warranty

Probability of brand 1 DVD needing repairs = Brand 1 sales percentage * Percentage of brand 1 needed repair

= 50% * 25%

= 12.5%

Probability that a DVD player will need fixing while under warranty = (50%* 25%) + (30% * 20%) + (20% * 10%)

= 20.5%

Probability that it is a brand 1 DVD player that needs repair work = 12.5% / 20.5%

= 60.98%

6 0
3 years ago
Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as he
Roman55 [17]

Answer:

d .$127,000

Explanation:

The computation of the beginning equity balance is shown below:

= Market value of the assets i.e agreed upon - Note payable secured by the asset

= $245,000 - $118,000

= $127,000

By deducting the note payable from the market value of the asset so that the beginning equity balance could come  

All other information mentioned in the question is not relevant. Hence, ignored it

8 0
3 years ago
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