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Softa [21]
4 years ago
9

3M’s preferred stock, which pays an annual dividend of $6 per share, was trading for $60 per share yesterday. However, news brok

e early this morning that some of the materials the company used for one of his most popular home products is a well-known carcinogenic. Consequently, the required rate of return for the stock went up to 12%. What will be the new price of the shares?
Business
1 answer:
Yuri [45]4 years ago
8 0

Answer:

$50

Explanation:

Given that,

Annual dividend per share = $6

preferred stock trading yesterday at = $60 per share

Required rate of return for the stock went up to = 12%

Cost of preferred stock = (Dividend ÷ share price)

0.12 = (6 ÷ New share price )

New share price = (6 ÷ 0.12)

New share price = $50

Therefore, the new price of the shares will be $50.

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8 0
4 years ago
A client who has been training at high intensities in preparation for a triathlon reports joint pain, excess fatigue, and the in
ser-zykov [4K]

Answer:

The correct answer to the following question is option B) Exhaustion .

Explanation:

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3 years ago
Baxter Inc. has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost
VashaNatasha [74]

Answer:

B)  WACC 12.00000%

Explanation:

WACC = K_e(\frac{E}{E+P+D}) + K_p(\frac{P}{E+P+D}) + K_d(1-t)(\frac{D}{E+P+D})

Ke 0.15 (we are asked for the WACC if retained earnings are used, so we ould assing RE rate

Equity weight 0.55

Kp 0.11

Preferred Weight  0.2

Kd(1-t) (after-tax debt) 0.07

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4 0
3 years ago
carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materia
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Answer:i dont answer

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3 years ago
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KonstantinChe [14]

Answer:

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Explanation:

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