1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mrac [35]
3 years ago
5

Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 7 percent yield at the time o

f issue. The preferred stock is now selling for $63. What is the current yield or cost of the preferred stock? (Disregard flotation costs.) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
pshichka [43]3 years ago
3 0

Answer: kp = D/Po

               D = 0.07 X $100 = $7

               kp  = 7/63

               kp = 11.11%

Explanation: The dividend paid on the preferred stock is 7 percent of the par value and the current market price is $63. Thus, the cost of preferred stock can be obtained by dividing the dividend paid by the current market price of the preferred stocks.

You might be interested in
The officer responsible for managing the firm's cash flows is the
Wewaii [24]
The officer responsible for managing the firm's cash flows is the <span>treasurer</span>.
8 0
3 years ago
Services can not be stored, warehoused, or inventoried. Because of this, many hotels and airlines offer deep discounts on rooms
vagabundo [1.1K]

Answer: This scenario demonstrates the PERISHABILITY quality of services.

Explanation: A Service Organisation can be defined as an organisation that practice the provision of such a service as economic activity.

Some of the qualities of Services include; variability; perishability; heterogeneity etc.

The perishability quality of service refers to the fact that services cannot be stored, warehoused, or inventoried and, therefore, are perishable.

4 0
3 years ago
Read 2 more answers
Gerome Houser is a pastry chef at McKay’s Eatery. His annual salary is $45,623. His benefits include $1,755 for two weeks of vac
alexgriva [62]
First, we add up all the benefits that Gerome Houser gets from his job. That is,
                       $1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer. 
                        ($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%. 
5 0
2 years ago
Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the consumers of good Y will end up paying
Alex_Xolod [135]

Answer:

The correct answer is option (B)  perfectly inelastic

Explanation:

It is a known facts that anytime tax is imposed on any goods at any given time, the tax falls totally on the consumers provided the elasticity of demand is zero.

Since increase in tax doesn't affect the demand for goods and services, and no matter the increment in price from the supplier, the demand remains the same. Therefore, the demand curve for goods Y is said to be perfectly inelastic.

4 0
2 years ago
True or False: Some nonactivists believe in a predetermined-money growth rate, which suggests that the monetary authorities shou
Paraphin [41]
True Some no activist believe in a predetermined money growth rate
6 0
2 years ago
Other questions:
  • Monetarists believe that in the short run a change in the money supply can affect _______________________, while in the long run
    10·1 answer
  • Cheryl Adams is having trouble defining her target market for the bookstore she's opening in her town, which is home to a small
    12·2 answers
  • You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig
    7·1 answer
  • Which of the following statements is true about taxes?
    9·1 answer
  • The following information relates to Purcaro, Inc. (Be careful of order of the columns): For the Year Ended December 31, 2018 20
    7·1 answer
  • Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of .75%. Economy Fund charges a front-end load of 2%, bu
    5·1 answer
  • How should I persuade someone to buy my donuts, like what should I say to convince them to buy one or two
    9·2 answers
  • 100 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! PLEASE ANSWER APROPPRIATELY!!!!!! NO LINKS OR FALSE ANSWERS PLEASE OR YOU WILL BE R
    14·1 answer
  • How might a business learn about a proposed process improvement through a prototyping activity? What is the fundamental purpose
    6·1 answer
  • If an organization wanted to improve employee involvement, efficiency, and customer satisfaction, what kind analysis might they
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!