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Nana76 [90]
3 years ago
13

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.80 dividend every year, in perpetuity. If thi

s issue currently sells for $80.50 per share, what is the required return?
Business
1 answer:
Mars2501 [29]3 years ago
8 0

Answer:

The required rate of return is 7.20%

Explanation:

The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.

This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.

So, using the equation, compute the price per share of the preferred stock as:

Rate = Dividend (D) / Price (P0)

where

Dividend is $5.80

Price (P0) is $80.50 per share

So, putting the values above:

Rate = $5.80 / $80.50

Rate = 7.20%

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Samuel's Mexican Restaurant incurred salaries expense of $ 64,000 for 2018. The payroll expense includes employer FICA​ tax, in
barxatty [35]

Answer:

SAMUEL's MEXICAN RESTAURANT

Date                Description                                 DR                        CR

2018               Salaries expenses                    64,000

                       Decduction                                                     15,000

                       cash                                                                 49,000

                Employee benefit                             8,180

               Health insurance                                                   2100

               Life Insurance                                                          320

             Retirement benefit                                                   5760                      

Explanation:

8 0
4 years ago
Three employees and their job descriptions are listed in the chart below.
Ilia_Sergeevich [38]
I think the answer is <span>Monica works for a utilities company, Travis is self-employed, and Maggie works for a power company.</span>
8 0
3 years ago
Read 2 more answers
A $200,000 loan amortized over 12 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove
lesya [120]

Answer:

loan balance after 12 years = $185409.8

Explanation:

Loan principal = $200000

interest = 10% of principal

amount paid yearly  = $21215.85

For 1st year

principal for the first year = $200000

required interest to be paid = 10% of 200000 = $20000

amount paid = $21215.85

Loan Balance after first year = (principal for first year) - (amount paid - 10% of principal ) = $198,784.15

For 2nd year

principal for the 2nd year = Loan balance after first year = $198,784.15

loan balance after 2nd year = 198784.15 - ( 21215.85 - 10% of 198784.15)

= $197568.30

same applies for the different years until the 12th year

using this formula :

Loan Balance after Nth year = [ Loan balance after (n-1) year - ( amount paid - 10% of loan balance after (n-1) year ) ]

6 0
3 years ago
The Japan Airlines CEO's behavior has been unordinary according to usual industry practices. He doesn't have a corporate jet, as
cupoosta [38]

Answer:

Organizational culture

Explanation:

Remember, the CEO holds a leadership role in which he could influence the culture of the organization.

Therefore, by removing the lavish lifestyle common among other CEOs from himself, Japan Airlines CEO is acting as a role model for other employees, so as to mould an organizational culture where workers avoid excessive spending of company money on personal nonessential things.

8 0
3 years ago
Which function of money describes its ability to enable trade between
aliina [53]

Answer:

D. Medium of exchange

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A medium of exchange is any physical object used as a measure of value to facilitate the transfer of goods and services between sellers and buyers. A medium of exchange acts as a go-between in transactions. In modern trade, money is the most widely accepted medium of exchange.

Today, goods and services are given a monetary value. Trade becomes relatively easy as buyers and sellers know how much money is needed to complete a transaction.

3 0
4 years ago
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