Answer:
A. The value of the preferred stock is $77.78 per share
Answer:
9.5 %
17.3%
Explanation:
The market required rate of return = risk free rate + ( Market Beta × Market risk premium)
= 3.5% + (1 × 6%) = 9.5%
The stock required rate of return = 3.5% + (2.3 × 6%) = 0.173 = 17.3%
I hope my answer helps you
Answer:
PV= $450,909.1
Explanation:
Giving the following information:
Cash flow (Cf)= $24,800
Growth rate (g)= 3.5%
Discount rate (i)= 9%
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<u>To calculate the present value, we need to use the following formula:</u>
PV= Cf / (i - g)
PV= 24,800 / (0.09 - 0.035)
PV= 24,800 / 0.055
PV= $450,909.1
Answer:
Ethical dilemma
Explanation:
This scenario causes a situation of ethical dilemma or also known as ethical paradoxes or moral dilemma. In ethical dilemma both the available choices are wrong and are conflicting with each other the decision between right and wrong is ethics, but when such a situation arises the decision is to be taken by the person facing this ethical dilemma and his/her actions solely depends on the moral choices of the person and his/her views about ethics.
