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iVinArrow [24]
3 years ago
14

A preferred stock pays an annual dividend of $5.20. What is one share of this stock worth today if the rate of return is 10.44 p

ercent?
Business
1 answer:
tekilochka [14]3 years ago
4 0

Answer:

$49.81

Explanation:

The stock price of the one share of the preferred stock in the given question  shall be determined through the dividend valuation formula which is given as follow:

Price of share=Dividend  per share/Rate of return

In the given question:

Dividend  per share=$5.20

Rate of return=10.44%

Price of share=5.20/10.44%=$49.81

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Let’s use the model of the supply and demand for bank reserves to explain how the Federal Reserve can change aggregate demand in
nikdorinn [45]

Answer:

A) To cut the interest rate from 2% to 1.5%, the Federal Reserve needs to increase the money supply. The Open Market Committee will have to sell US Treasury security bonds in order to increase the money supply. This in turn will increase commercial bank's reserves, who in turn, will lower their interest rates in other to get rid of excess reserves.

B) Banks will lend more money because they now have excess reserves. It will increase the nation's money supply because banks create money when they make loans.

C) This will typically increase aggregate demand because a lower interest rate and cheaper loans result in a higher demand for financial securities. Firms will take more loans, they will use this loans for investments, and this investments will in turn increase production. Increased production means a higher supply of goods and services at a better price, and consumers will take advantage of it.

7 0
3 years ago
What define(s) "degrees of acceptability and unacceptability"?
Novosadov [1.4K]
A I believe is the answer. Hope it helps and I am sorry if it is wrong.
8 0
3 years ago
Read 2 more answers
A company's flexible budget for the range of 26,000 units to 40,000 units of production showed variable overhead costs of $3.80
makvit [3.9K]

Answer:

<em>Controllable cost variance   = </em><em><u> </u></em><em>$51,600.  favourable</em>

Explanation:

<em>The controllable cot variance is the difference between the the standard controllable cost for the actual output and the actual controllable cost</em>

                                                                                                $

Standard controllable cost for the output achieved      

( $3.80 × 40,000)                                                       =     152,000

Actual controllable cost (169,400-69,000)            =      <u>  100,400</u>

<em>Controllable cost variance                            </em><em>                  </em><em><u> 51,600. Favorable</u></em>

<em>                                    </em>

<em>Note that the fixed cost  of $69,000 is not a controllable cost, hence it is deducted from the total overhead cost</em>

3 0
3 years ago
Baby boomers are interested in _____ brands, or products that reflect a certain time period, and are targeted with products like
Alex Ar [27]

Answer:

Option A: retro

Explanation:

Difference factors influence consumers to buy certain things. These factors are used to segment consumers. The segmentation is done includes: behavioural, demographic, geographic and psychographic.

Baby boomers fall under the demographic segmentation under the age classification of generations (includes: seniors, baby boomers, generation X and generation Y( college age students).

Today's college age students compose the largest generation. The baby boomer generation is the second largest and over the last thirty years or so, has been a very attractive market for sellers. Retro (old) brands or products that companies "bring back" for a period of time we're aimed at baby boomers during the economic downturn. A perfect example is the Pepsi throwback and Mountain Dew throwback, which are made with cane sugar like they were "back in the good old days" instead of corn syrup.

Therefore, the option that best suits the question is option A, RETRO.

6 0
3 years ago
Read 2 more answers
Novak Co. uses the net method to account for cash discounts. On June 1, 2020, it made sales of $52,500 with terms 3/15, n/45. On
Misha Larkins [42]

Answer:

Explanation:

The journal entries are shown below:

On 1 June 2020

Accounts receivable A/c Dr  $50,925

       To Sales revenue $50,925

(Being goods are sold on credit)

On July 12 2020

Cash A/c Dr $50,925

     To Accounts receivable A/c  $50,925

(Being cash received is recorded)

The computation is shown below:

= Sales amount - discount

= $52,500 - $1,575

= $50,925

And, The discount = Sales amount × discount rate

= $52,500 × 3%

= $1,575

6 0
3 years ago
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