Answer:
Explanation:
The value of the preferred stock would be
= Annual dividend ÷ annual yield
= $100 × 10% ÷ 8%
= $10 ÷ 8%
= $125 per share
And, the new market value would be
= Annual dividend ÷ annual yield
= $10 ÷ 13%
= $76.92 per share
For computing the stock value or market value we simply divide the annual dividend by the annual yield
Answer:
True
Explanation:
The statement is true because according to dividend growth method the price of the given preferred stock is $81.25.
Formula to calculate the prce of share using Dividend growth method is
Price of share = D0 / (Rate of return - Growth rate)
In case of preferred stock a stable dividend is paid and there is no growth in the dividend payment.
so
Price of share = D0 / (Rate of return - 0)
Price of share = D0 / Rate of return
Share price = $6.5 / 0.08
Share Price = $81.25
Answer:
Answer: The net operating income used in contribution approach the first quarter is 171600
Explanation:
Description Amount Amount
Sales 960000
Variable expenses:
Cost of good sold 670000
Variable selling 80000
(5 per book*16000 books)
Variable administrative 38400
(960000*4%)
Total variables expenses 788400
contribution margin 171600
working note:
unit sales=960000/60 per book=16000 book
If a firm hires an additional worker and discovers that its total output has fallen, then it must be true that marginal physical product is negative.
What is the change in total output that results from hiring one additional worker?
The difference in production brought on by using an additional unit of labor is known as the marginal product of labor.
Does hiring additional workers increase the total revenue at a decreasing rate?
Total output increases with additional employees, although at a slower rate. a stage of production where an increase in the labor force leads to a decline in labor's marginal product. With each new unit of labor added to the mix, a company with this will produce progressively less production.
Learn more about marginal product of labour: brainly.com/question/16690539
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