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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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How you gain information about what is happening around the property
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Riverbed Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivable $111,900,
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Explanation:

Preparation for the current assets section of the balance sheet

Current assets

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3 years ago
A decrease in the money supply will shift the aggregate __________ curve to the __________.
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