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Basile [38]
3 years ago
5

A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, d

ividends are not expected to grow. You require a return of 7% on this stock. Using the constant-growth DDM to calculate the intrinsic value, a preferred share of Coquihalla Corporation is worth ________.
Business
1 answer:
ki77a [65]3 years ago
6 0

Answer:

Intrinsic value is $114.30

Explanation:

Given:

Dividend paid = $8

Required rate of return = 7% or 0.07

There is no growth in dividends.

Calculate price of preferred share using DDM as shown below:

Price of preferred share = Dividend paid ÷ Required rate of return

                                          = 8 ÷ 0.07

                                          = $114.28 or $114.3

Therefore, price of preferred share is $114.30

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On January​ 1, 2017,​ Sophie's Sunlounge owned 4 tanning beds valued at​ $20,000. During​ 2017, Sophie's bought 3 new beds at a
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Answer:

Net Investment = 4,000

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3 years ago
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4 years ago
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nika2105 [10]

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8 0
3 years ago
Jones Manufacturing incurred fixed overhead costs of $8,000 and variable overhead costs of $4,600 to produce 1,000 gallons of li
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Answer:

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Explanation:

Variance is the difference between budgeted and actual expense.  It is favorable when the actual is less than the budgeted amount.  It is unfavorable when the actual is more than the budgeted amount.  It is neither favorable nor unfavorable when the actual equals the budgeted amount.

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In Jones Manufacturing, actual and budgeted costs are calculated as follows:

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Variable overhead = $4,600

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