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vazorg [7]
4 years ago
7

A preferred stock has a face value of $100 and pays annual dividends at a rate of 8 percent. The required rate of return on this

stock is 12 percent. What is the price of this security if the next dividend is paid in exactly one year?
Business
2 answers:
Rama09 [41]4 years ago
8 0

Answer: $66.67

Explanation:

GIVEN the following ;

Face value of preferred stock = $100

Dividend rate per annum = 8% = 0.08

Required rate of return = 12% = 0.12

Price of stock if Dividend is paid in exactly one year =?

Price of stock = ( Dividend ÷ Rate of return)

Dividend = (annual dividend rate × face value of stock)

Dividend = 0.08 × $100 = $8

Price of stock = ($8 ÷ 0.12)

Price of stock = $66.667

Therefore price of security if Dividend is paid in exactly one year = $66.67

denpristay [2]4 years ago
4 0

Answer: $66.67

Explanation:

The value of a Preferred Stock is calculated with the following formula,

Value of the preferred stock = Annual Dividend/rate of return

The Annual Dividend is 8% of the face value so,

= 0.08 * $100

= $8

Therefore the Value of the Stock is,

= 8/0.12

= $66.67

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A. Primary Social Stakeholders

Explanation:

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The long run is longest for Boeing because aircraft production requires​ large, specialized machines and shortest for Wacky​ Jack's because providing singing telegrams requires primarily labor.

Explanation:

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Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock
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Answer:

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Retained earnings will decrease for the total amount of the dividends.

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3 0
3 years ago
Write the AddressList method newBusiness. This method searches addresses for an existing business with an identical address (i.e
max2010maxim [7]

Answer:

See explaination

Explanation:

// Address.java

public class Address {

/**

* The name of the business

*/

private String name;

/**

* The name of the street the business is on

*/

private String street;

/**

* The street number of the business

*/

private int number;

/**

* Constructs an Address that represents a business with name nm,

* at number no on the street st

*/

public Address(String nm, String st, int no)

{

name = nm;

street = st;

number = no;

}

/**

* Returns the name of the business

*/

public String getName()

{

return name;

}

/**

* Returns the name of the street on which the business is located

*/

public String getStreet()

{

return street;

}

/**

* Returns the street number of the business

*/

public int getNumber()

{

return number;

}

}

//end of Address.java

//AddressBook.java

import java.util.ArrayList;

import java.util.List;

public class AddressBook {

/**

* The list of business addresses. No two businesses in the list

* can have the same address (both the same street and street number)

*/

private List<Address> addresses;

/**

* Constructs an empty AddressBook

*/

public AddressBook()

{

addresses = new ArrayList<Address>();

}

/**

* atparam st the name of a street

* atreturn a list with the names of each business with an address on that street

*/

public List<String> onStreet(String st)

{

// create an empty output list of names of business

List<String> businessName = new ArrayList<String>();

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith street of address = nm, add the name of the business to the output list

if(addresses.get(i).getStreet().equalsIgnoreCase(st))

businessName.add(addresses.get(i).getName());

}

return businessName; // return the list

}

/**

* Searches for an existing business with an identical address (street and number

* both match). Updates the record to an address with name nm, street st and number no.

* If no entry already exists adds a new address to the end of the list with these parameters.

*

* atparam nm the name of the business

* atparam st the street the business is on

* atparam no the street number of the business

* atreturn the index of where the business address is on the list

*/

public int newBusiness(String nm, String st, int no)

{

// loop over the list of addresses

for(int i=0;i<addresses.size();i++)

{

// if ith index addresses match the street and number of the input st and no

if((addresses.get(i).getStreet().equalsIgnoreCase(st)) && (addresses.get(i).getNumber() == no))

{

addresses.remove(i); // remove the ith address from list

addresses.add(i, new Address(nm,st,no)); // add a new address with the input name, street and number at ith index

return i; // return the index i

}

}

// if no address match, add the business at the end of the list

addresses.add(new Address(nm,st,no));

return addresses.size()-1; // return the last index

}

}

//end of AddressBook.java

5 0
4 years ago
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