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NemiM [27]
3 years ago
10

International Imports (I2) pays an annual dividend rate of 10.40% on its preferred stock that currently returns 13.94% and has a

par value of $100.00 per share. What is the value of I2’s preferred stock? $100.00 per share $74.61 per share $111.91 per share $89.53 per share Suppose that due to high inflation, interest rates rise and pull the preferred stock’s yield to 18.12%. The value of the preferred stock will .
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

$74.61 per share , decrease.

Explanation:

First calculate value of preferred share if return is  13.94% ;

Value of preferred share =(Annual dividend rate  * Par value)/ Rate of return

Value = (0.1040* 100)/0.1394

Value = 10.40/ 0.1394

Value = $74.61

Next, calculate value of preferred share if return is  18.12% ;

Value of preferred share =(Annual dividend rate  * Par value)/ Rate of return

Value = (0.1040* 100)/0.1812

Value = 10.40/ 0.1812

Value = $57.40

Since the value has gone from $74.61 to $57.40, it means that the value will DECREASE.

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Here are the data for the past 21 months for actual sales of a particular product:LAST YEAR THIS YEARJanuary 325 260February 440
Ronch [10]

Answer:

Fore cadet for fourth quarter us $1085

Explanation:

One Quarter = 3 months

Demand for quarter 1 = 325 + 440 + 450 = 1215

Quarter Demand in Each Quarter Weighted Forecast

1 1215

2 1280

3 1125

4 1610

5 1010

6 1220

7 1055

8 1085

Weighted moving Average Forecast = ((0.25 * 1010) + (0.25 * 1220) + ( 0.5 * 1055) = 1085

Forecast for the fourth quarter is 1085

7 0
3 years ago
g Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each
Tanya [424]

Answer:

B. a debit to Interest Expense for $ 42 comma 750.

C. a credit to Cash of $ 137 comma 750.

Explanation:

Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.

As per given data

Principal Payment = $95,000

First Interest payment = $475,000 x 9% = $42,750

Total Payment = $95,000 + $42,750 = $137,750

Journal Entry for first payment

Dr. Interest Expense $42,750

Dr. Not Payable         $95,000

Cr. Cash                     $137,750

6 0
3 years ago
What can hope do to change the numbers 2, 3, 5 and 6 to lowercase letters?
RideAnS [48]

Answer: D

Explanation:

Use the Mutlilevel List Icon

6 0
3 years ago
Hich of the following industries is not considered to be defensive?
AnnyKZ [126]

The correct option is Building materials.

Building materials:

  • 1: a building constructed for long-term usage that is typically walled and roofed (as for a dwelling) 2: the process of putting together materials to form a structure. Synonyms Example Sentences Phrases containing structure Learn More About Construction.
  • Any kind of man-made construction is a structure. It might be a dam or a bridge, for instance. In contrast, a building is a closed construction with walls and a roof.
  • The following structures are included in the definition of a building: Walls, floors, roofs, chimneys, plumbing and drainage systems, fixed constructions, etc. are examples of structural components. Verandas or atriums, balconies, cornices, building projections that extend past the structure's outside walls, etc.

Learn more about building materials here brainly.com/question/9779427

#SPJ4

6 0
1 year ago
At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capit
Greeley [361]

Answer:

The total amount of stockholders' equity is: $10,000

Explanation:

The accounts and values included in stockholders' equity are:

  • Common stock           4,000 (1)
  • Paid in capital             4,000 (2)
  • Treasury stock           -1,000 (3)
  • Retained earnings     <u> 3,000 (4)</u>

Total stockholders' equity  10,000

1 - Nominal value of outstanding shares.

2- Difference between the price paid by stockholders when shares were issued and nominal value.

3- Shares recovered by the company.

4- Earning accumulated by the company.

7 0
3 years ago
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