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dmitriy555 [2]
2 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]2 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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The true statement that we can see about the non exempt employees is that nonexempt employees are covered by flsa and include most hourly workers.

<h3>What is meant by non exempt employees?</h3>

Employees who are not excluded from pay have a right to the minimum wage and overtime compensation if they put in more than 40 hours per week.

For each hour over 40 in a workweek, businesses are required by the FLSA to pay non-exempt workers no less than time and a half their usual wage rate. If a non-exempt worker isn't paid hourly, one can determine their hourly rate by dividing their total earnings by the number of hours they worked. When making these calculations, vacation, holidays, and sick days shouldn't be taken into account unless the person really worked on those days.

Employers shouldn't presume that just because a worker receives a pay, they can be lawfully regarded as exempt under the FLSA. Employees may be entitled to overtime compensation if they don't pass an acceptable duties test, make less than $684 per week or $35,568 per year, or have certain deductions made from their pay.

Read more on non exempt workers here: brainly.com/question/28136801

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3 0
1 year ago
The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be p
ASHA 777 [7]

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

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Answer:

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