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
stellarik [79]
4 years ago
12

E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 6 years from

now. If the market requires a 12 percent return on this investment, how much does a share of preferred stock cost today?
Business
1 answer:
Pepsi [2]4 years ago
8 0

Answer:

Price of stock= $66.19

Explanation:

The price of preferred stock is  the dividend payable discounted at the required rate of return of 12%.

Price = Dividend/required rate of return

Discount the dividend to to its worth in year year 5

Price = 14/0.12= 116.666

Step  2

Discount the dividend to year o

Price of stock = 116.66× 1.12^(-5)= 66.19

Price of stock= $66.19

You might be interested in
Under which market structure does the action of one firm have a spillover effect on the decisions of other firms?
irina [24]

I believe the answer is: Monopoly

In monopoly, the power to determine the price of a certain type of product fall to the hands of a single company. Which means, every single actions that made by this company would force other firms to conform since they do not possess enough resources to challenge this controlling company.

5 0
4 years ago
Anika knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied
Luda [366]

Answer:

<u>Opportunity</u>

Explanation:

A code of conduct creates a formal way of how employees maintain a standard of conduct while interacting and discussing ideas.

Such a conduct is essential for any organization since it implements the abidance by rules and organizational policies treating everybody equally and ensuring just and fair treatment to all.

In the given case, an employee observes the existence of a formal code of conduct at her workplace which is not implemented consistently at all levels and covering all employees.

Such negligence in implementation would lead to an enhancement of the possibility and creates an opportunity for employees to commit unscrupulous acts, being aware of the shortcomings in the implementation of such formal code of conduct.

7 0
3 years ago
Examine this supply and demand graph for a product. What does the red dot
pantera1 [17]

The product’s equilibrium price

Just simply because the price and quantity is the same

7 0
3 years ago
Choose the best closing for a message requesting the receiver's support for a proposed change in a benefits plan.
Svet_ta [14]
<span>Choose the best closing for a message requesting the receiver's support for a proposed change in a benefits plan. C</span><span>ontacting me by December 1 about your support of this new benefits plan will allow me to present this proposal at the next strategic planning session. Out of the above options, this option sounds the best and hits all of the necessary points to conclude a request. </span>
5 0
3 years ago
What is a product line? Why are they used and how do companies determine what to use and how to adjust what is being used?
Trava [24]
A product line is a group of related products produced by one manufacturer they use product lines to gauge trend a find out which markets to target they use whatever is being sold the most and go from there
8 0
3 years ago
Other questions:
  • What makes you blush hard?
    12·1 answer
  • The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c
    11·1 answer
  • to startup a small part time business assume your only cost are paying $100 for equipment and paying each employee you hire $ 20
    11·1 answer
  • You measure sales over time and realize that the months of July, August, and September are particularly slow. As a result, you a
    15·1 answer
  • How does the assembly line benefit the economy?
    15·1 answer
  • Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufactu
    12·1 answer
  • Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per
    9·1 answer
  • Clothing retailer Lululemon often has displays in their front window that try to raise awareness on specific issues such as the
    14·1 answer
  • To compare statement of cash flows reporting under the direct and indirect methods, indicate whether each item is used in the di
    7·1 answer
  • Help hep help help help
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!