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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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A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

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b. Assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Charlie’s currently earns.

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c. Suppose you presented the results of your analysis in parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to practically double my sales volume to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required?

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