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
taurus [48]
3 years ago
7

21. Preferred stock pays quarterly dividend of $3 a share. If investors require 12% return on a stock of a similar risk level, w

hat is the price
Business
1 answer:
Pachacha [2.7K]3 years ago
7 0

Answer: $100

Explanation:

A value of a Preferred Stock is calculated like a perpetuity which means that it is derived by dividing the cash-flow by the annual interest rate.

This Stock pays $3 per quarter. It will pay _____ per year;

= $3 * 4

= $12

Value of Preferred Stock = \frac{Annual Cash-flow}{Annual Interest}

= \frac{12}{0.12}

= $100

You might be interested in
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
rosijanka [135]

Answer:

#1, It can change and #3, it can be in an existing building to repair or remodel

Explanation:

Construction is not at a desk.

6 0
3 years ago
Read 2 more answers
A process cost accounting system is most appropriate when
mixer [17]

Answer:

When Manufacturing of a Product involves several processes.

Explanation:

When several processes are involved in manufacturing a product, costs need to be accumulated in these processing departments. Thus, A process cost accounting system is most appropriate

4 0
3 years ago
A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually in
Oksana_A [137]

Answer:

faces exchange rate risk to the extent that it has international competitors in the domestic market.

Explanation:

Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.

So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.

For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.

5 0
3 years ago
What are 2 types of goods/services that lends themselves well to non-price competition?
Luden [163]
<h2>Answer:Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.</h2>

Explanation:

4 0
3 years ago
What are the most important information needs that a governmental annual report should fulfill for each of the following: ______
vladimir2022 [97]

Answer:

1. Compensation for employment services that they offer.

2. Disbursement in sufficient proportions of the available funds.

3. How the government have used their tax money.

4. The ability and capacity of the government to honor debts.

Explanation:

Each stakeholder to the governmental annual report hold a different need compared to the other. Therefore it is important to pay attention to whom the financial statements speaks to. The above shows the different needs of the stakeholders to  governmental annual report.

8 0
3 years ago
Other questions:
  • A parking lot charges $2 per hour for the first 4 hours, then $3 per hour after that. Which equation(s) describes the total cost
    5·1 answer
  • The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Y
    8·1 answer
  • A prospective buyer is interested in purchasing a vacant lot in a rural subdivision. The buyer wishes to know about sewer assess
    11·1 answer
  • A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?
    14·1 answer
  • The three C's used in the subjective approach to determining a credit score
    15·1 answer
  • Which of the following is a major reason that people move to exurbs?
    6·2 answers
  • Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of
    7·1 answer
  • In implementing a lean production system you should work with suppliers to do which of the following? open facilities near your
    9·1 answer
  • A process is in control and centered at nominal. Output from the process is normally distributed and the process capability inde
    5·1 answer
  • Which aspect is an essential feature of a joint venture between two companies that come together for global trade?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!