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
Galina-37 [17]
3 years ago
11

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $2.85 dividend every year, in perpetuity. If thi

s issue currently sells for $77.32 per share, what is the required return?
Business
1 answer:
nikdorinn [45]3 years ago
7 0

Answer:

3.69%

Explanation:

The formula to compute the required rate of return is shown below:

=  (Annual dividend per year) ÷ (Current selling price per share) × 100

= ($2.85) ÷ ($77.32) × 100

= 3.69%

We simply divide the annual dividend per year with the current selling price per share and then multiply it by  percentage, so that the required rate of return can come in percentage

You might be interested in
Prebankruptcy counseling includes all of the following except:
Anon25 [30]
My answer would probably be B!
7 0
3 years ago
Hi I need help with this question. I don't know what I'm doing so I hope you can explain how to solve it. Thank you in advance.
lora16 [44]
Invest into 3D printing organs you will become a million trust me
3 0
2 years ago
A. the repairs do not extend beyond the damage suffered.
TEA [102]
It would be c. hope that helps
5 0
3 years ago
Higher nominal interest rates ______ the amount of money demanded and higher real income ______ the amount of money demanded.
Ulleksa [173]

Answer:

decreases

increases

Explanation:

Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.

Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.

3 0
3 years ago
If,at the current level of output, a firm's average cost is greater than its marginal cost, then:
nata0808 [166]

e)average fixed cost must be constant

6 0
3 years ago
Other questions:
  • Closing a sale refers to: A. asking for a referral from a prospective customer.B. being turned down by a prospective customer.C.
    5·1 answer
  • While it sounds reasonable that companies should focus on making the products it knows how to make really well, one downside of
    9·1 answer
  • Multinational companies (MNCs) have found that cross-functional coordination results in people spending more time within their f
    6·1 answer
  • What does the preamble to the Constitution envision?
    12·2 answers
  • The calculation of the payback period for an investment when net cash flow is uneven is: Multiple Choice Determining the net pre
    11·1 answer
  • Cavern Company's output for the current period results in a $6,400 unfavorable direct material price variance. The actual price
    14·1 answer
  • Hewo how are u today
    15·2 answers
  • When Unraveling the Unit Circle the sine function creates a relationship between the _________and the ________ starting at 0 rad
    7·1 answer
  • WILL GIVE BRAINLIST it wont let me add the question so theres a screenshot ASAP
    5·2 answers
  • 10. Studying data with the goal of discovering new information to aid decision-making is
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!