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BabaBlast [244]
3 years ago
11

Maynard Inc. preferred stock pays an annual dividend of $7 per share. Which of the following statements is true for an investor

with a required return of 9%?A) The value of the preferred stock is $77.78 per share.B) The value of the preferred stock is $7 because the dividend is fixed at $7 each year .C) The value of the preferred stock is $63.00 per share.D) The value of the preferred stock is $6.30 per share because of the 9% required return.
Business
1 answer:
Feliz [49]3 years ago
7 0

Answer:

A. The value of the preferred stock is $77.78 per share

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John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.
spayn [35]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $34,000

       To Common stock A/c $34,000

(Being the cash is received in exchange of common stock)

2. Medical supplied A/c Dr $17,000

          To Account payable A/c $17,000

(Being the medical supplies are purchased on account)

3. Cash A/c Dr $1,600

        To Service Revenue A/c $1,600

(Being the cash is received for service performed)

4. Office Rent Expenses A/c Dr $3,000

           To Cash A/c $3,000

(Being the office rent expense is paid for cash)

5. Accounts Receivable A/c Dr $7,000

            To Service revenue A/c $7,000

(Being the service revenue is recorded)

4 0
3 years ago
A benefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. A proof of purchase
crimeas [40]
Hey there,

A benefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. A proof of purchase is often needed in all of the following situations except: Equipment rental
<span>
~Jurgen


</span>
7 0
3 years ago
Read 2 more answers
Under U.S. GAAP, cash flows from investing activities do not include:a. cash payments to acquire equipment.b. cash received from
Semenov [28]

Answer:

The correct answer is letter "C": investment revenue in cash.

Explanation:

Cash flows from investing activities are portrayed in the Cash Flow Statement indicating the amount o cash that was generated or spent from investment-related activities of the company. Usually, <em>cash payments to acquire physical assets, receipts from the sale of intangible assets, cash payments or receipts for the sale of bonds or shares of other companies, </em>and <em>cash payments in the form of loans</em> are considered in the cash flows from investing activities.

<em>According to the U.S. Generally Accepted Accounting Principles (GAAP), investment revenue in cash is reported as an inflow from operating activities.</em>

6 0
3 years ago
Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a FIXED rate. B wants to finance
QveST [7]

Answer:

party A will pay floating rate while party B will pay fixed rate

Explanation:

For A

Sources at floating rate = prime 1%

received fixed rate = 8.9%

For B

sources fixed rate = 8.9%

Received floating rate = prime 1%

For a mutually beneficial interest only swap that makes money for A,Band the swap bank in equal measure, the party A will pay floating rate while party B will pay fixed rate

4 0
3 years ago
An investor owns 60 shares of common stock of a company issuing new shares in a rights offering. The stock trades at $12 per sha
Mkey [24]

Answer:

7 shares and $70

Explanation:

The computation is shown below:

The additional shares is

= 60 shares ÷ 9

= 7 shares

And, the amount  of money that have to be paid is

= Additional shares × purchase price

= 7 × $10

= $70

Therefore the same would be considered relevant

4 0
3 years ago
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