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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

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Answer: B

Explanation:

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During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to
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1 year ago
Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. H
AURORKA [14]

Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect

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From the information given in the question, the journal entry at the time of sales will be represented as:

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Credit Sales $1750

Now, when the credit receipt is received as illustrated in the question, the journal entry will be:

Debit Cash $1,750

Credit Accounts receivable $1,750

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The correct option is B.

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3 years ago
how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
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