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ahrayia [7]
3 years ago
7

Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue cu

rrently sells for $91 per share, what is the required return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
Business
1 answer:
Lorico [155]3 years ago
8 0

Answer:

7.20%

Explanation:

In this question, we are to calculate the required return.

From the question we identify the following;

Next dividend = $6.55

required return = ?

Share price = $91

Mathematically;

share price = Dividend/Rate of return

Hence;

Rate of return = Dividend/share price = 6.55/91

Rate of return = 0.071978021978022

= 7.20%

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Tommy Richards is paid $20.50 an hour for a regular 40-hour week. He earns time and a half if he works overtime. This week Richa
RoseWind [281]

Answer:

$1,094.50

Explanation:

Regular pay is $20.50

Over time pay is $20.50 x 1.5 = $30.75

Tommy earned as follows.

Regular hours : 40 x $20.50 = $820

Overtime hours: 9 x $30.75 =$274.50

Total amount earned

= $820 + $274.50

=$1,094.50

7 0
3 years ago
CrochetCo is considering an investment in a project which would require an initial outlay of $350,000 and produce expected cash
Lelu [443]

Answer:

Ans. A) NPV= -$9306

Explanation:

Hi, the first thing we need to do is to find the after-tax cost of the firm's capital, and since all capital sources are expressed in terms of after-tax percentage, we just multiply each proportion of capital by its costs, I mean

Long term Debt (7%) * 25% +Preffered Stock(11%)*15% + Common Stock(15%)*60%

The answer to this is 12.40%.

Now, we can find the net present value of this project by using the following formula.

NPV=-InitialOutlay+\frac{CashFlow((1+Cost of Capital)^{n} -1)}{Cost of Capital(1+Cost of Capital)^{n}}

NPV=-350,000+\frac{95,450((1+0.124)^{5} -1)}{0.124(1+0.124)^{5}} =-9,306.5

Since the expected cash flow takes place 5 times form year 1 to 5, and is equal to $95,450, "n" is equals to 5 and "CashFlow" is equal to $95,450.

Therefore, the NPV of this project is -$9,306, which is answer A)

Best of luck.

3 0
3 years ago
When will diversity affect the workplace?
DochEvi [55]
It already does affect the workplace.
8 0
3 years ago
Read 2 more answers
Please help me. Only answer if you know.
Nostrana [21]
A. Occupational Outlook Handbook.
3 0
3 years ago
Which is NOT a first degree misdemeanor for a licensee if found guilty? The publishing of false or misleading information The un
svet-max [94.6K]

Answer:

1. The unlawful collection of an advance fee for listing real property

2. Acting as a broker or sales associate without holding an active, current license.

Explanation:

Considering the available options, the ones that are NOT a first-degree misdemeanor for a licensee if found guilty are:

1. The unlawful collection of an advance fee for listing real property

2. Acting as a broker or sales associate without holding an active, current license.

This is because a first-degree misdemeanor is considered to be a result of "rental information violations."

And considering the available options, The publishing of false or misleading information and Failing to provide accurate and current rental information for a fee, falls within the misdemeanor charges.

3 0
3 years ago
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