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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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Managerial economics can be applied to the non-profit organizations too. Justify this statement?
DIA [1.3K]

Managerial economics can be applied to the non-profit organizations too because it help them in organizing, and controlling their resources.

Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.

<h3>What is Managerial economics?</h3>

Managerial economics is an area of economics that is used for staffing, as well as controlling the resources of the organization.

With Managerial economics , one can carry out:

  • planning
  • directing
  • organizing

In this case, Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.

Learn more about Managerial economics at:

brainly.com/question/15050855

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8 0
1 year ago
Based on your knowledge of international trade organizations, answer the following question.
IgorC [24]

Answer:

b. The global financial crisis of 2008 threatened the EU by exposing differences in the economic strength of its member states.

d. The EU introduced the euro, a common currency that facilitates travel, trade, and investment.

Explanation:

Trade of factors and finished goods increased exponentially over the couse of the years after implementing the Euro

This makes possible a lot of new project and investment as it was a strong currency with virtually no risk of devaluation thus, very reliable. In the past, European currency will tend into depreciation and inflation. This doesn't occur with the Euro

Also whe nthe 2008 sub-prime crisis hit we manage to discover the great difference between the central power and the other nations such as ireland, spain, greece and portugal This were called (PIGS)

However is important to notice how Ireland has manage to leave those problem behind with a serious of reform after the crisis.

3 0
2 years ago
The internal rate of return is:
shepuryov [24]

Answer:

The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.

Explanation:

The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.

<em>In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.</em>

5 0
3 years ago
Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $2
laiz [17]

Answer:

$117500

Explanation:

Taxable loss = $140000 for 2018

Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017

tax rate = 30%

Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )

first calculate taxes on taxable incomes for 2016 and 2017

$35000 * 30% = $10500

$40000 * 30% = $12000

hence taxable profit = 10500 + 12000 = $22500

Net loss to be reported on 2018 income statement

= $140000 - $22500 = $117500

8 0
3 years ago
Vinnie (our friend in the video) had a lot of credit cards, and he did have fun with them! Then he nearly went broke. What was t
anyanavicka [17]

The main thing Vinnie did wrong was have multiple credit cards, and it say sin the question 'had fun with them' he probably did not monitor how much money he was spending.

8 0
3 years ago
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