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
ki77a [65]
3 years ago
14

Bedeker, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue cu

rrently sells for $91 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
navik [9.2K]3 years ago
4 0

Answer:

The required rate of return is 7.20%

Explanation:

The price of a share that pays a particular dividend amount in perpetuity is given by the below formula:

price of share=dividend/required rate of return

price of share is $91.00 per share

dividend payable in perpetuity is $6.55

required rate of return is unknown

$91=$6.55/required rate of return

required rate of return =$6.55/$91

                                       =7.20%

to confirm the required of return,I divided the by the required rate of return as shown below:

6.55/0.0.72=$90.97 .approximately $91

That is a way to validate the computed required rate of return

You might be interested in
You work for an accounting firm, and your supervisor is interested in learning more about the proposed tax reforms in your state
masha68 [24]

Answer: An investigative report

Explanation:

An investigative report is created with the intent which is that it may be used in a court of law. The investigative report should be succinct and must focus on the mission of the investigation.

The investigator's primary purpose is to find information and evidence on a precise matter, in order to recover significant documents, or certain file types. The goal of the investigation is usually defined by ones client who could either be internal to the organization one works for or another lawyer or investigator.

6 0
3 years ago
Paper Co. had net income of $70,000 during the year. Dividend payment was $10,000. The followinginformation is available:Mortgag
Marina CMI [18]

Answer:

net cash provided by operating activities 60,000

Explanation:

net income  70,000

Change in working Capital

Increase Inventory (40,000)

Increase Account payable 30,000

Net change in working capital  (10,000)

net cash provided by operating activities 60,000

The working capital is the current asset and current liabilities.

the dividend, bonds and mortgare are not operating activities.

the securities are considered cash.

3 0
3 years ago
If you show the audience the impact of brain injuries in child athletes and then tell how to improve the situation, you are usin
Simora [160]

<span>The answer to this question is Problem and solution organizational pattern. In Problem and solution organizational pattern it presents the problem and what caused the problem then explains the possible solution for the problem. Using this kind of organizational pattern, it can persuasive listeners and can tend to let the audience believe in the solution that the person is implying.  </span>

6 0
3 years ago
The maximum distance people are willing to travel for a service is
ladessa [460]

Answer:

Range

Explanation:

Range is the term which is used to describe the maximum distance which the consumers or customers are prepared or willing to travel in order to acquire the goods or to use a service.

It is because at some point, the expense or the inconvenience which will outweigh the requirement of the good.

And there are two types of range, one is small rage and other is large range.

Small range is the range which the people are willing to go only a distance which is short for the everyday consumers services like the pharmacies, grocery. While the large range is the range which will people travel the longer distances for the other services like ball game.

6 0
3 years ago
Activity based costing _____________
Ilia_Sergeevich [38]

Answer:

1. groups costs into meaningful buckets that are then distributed based on the activity or product they support.

Explanation:

Activity based costing basically categorizes various overheads into different activities, that leads to charge of overheads based on different activities.

In this manner overheads that shall be charged on some standard products based on the activities involved is charged accordingly, and not based on standard overhead allocation rate.

Basically the overheads are divided into various activities and then distributed  to each product based on the volume of activity in the manufacturing process of such activity.

7 0
3 years ago
Other questions:
  • Which sentence in the passage represents a safe work practice? Daisy and Norah are colleagues in a software company. A.Daisy slo
    15·2 answers
  • When selecting smallwares to use in the kitchen a manager must be sure?
    10·1 answer
  • Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of san
    8·1 answer
  • Hoover Company purchased two identical inventory items. The item purchased first cost $45.50. The item purchased second cost $50
    6·1 answer
  • When applying the diversification analysis technique, market development refers to the marketing strategy of?
    15·1 answer
  • Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The comp
    9·1 answer
  • A woman listed her house that had prize roses bushes in the backyard. She told her agent that she would be removing the roses fr
    15·1 answer
  • Brickhouse is expected to pay a dividend of $3.65 and $2.66 over the next two years, respectively. After that, the company is ex
    13·1 answer
  • The following trial balance was extracted from the books of Kalekeno, a sole trader, at 31st Dec2018:
    14·1 answer
  • a _____ is a reasonable estimate of the amount of time needed to perform a task based on an analysis of the work by an operation
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!