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
GuDViN [60]
3 years ago
6

Caspian Sea is considering raising $33.00 million by issuing preferred stock. They believe the market will use a discount rate o

f 11.87% to value the preferred stock which will pay a dividend of $3.23. How many shares will they need to issue
Business
1 answer:
Hitman42 [59]3 years ago
3 0

Answer:

1,212,723 shares

Explanation:

Given that,

Value of issuing preferred stock = $33,000,000

Discount rate = 11.87%

Dividend paid = $3.23

Price of preferred stock:

= Annual dividend ÷ discount rate

= $3.23 ÷ 0.1187

= $27.2115

Shares will they need to issue:

= Value of issuing preferred stock ÷ Price of preferred stock

= $33,000,000 ÷ $27.2115

= 1,212,723

You might be interested in
If you have not used something for over six months you should consider getting rid of it
andrew11 [14]

True. It will use up valuable space.


3 0
3 years ago
Which of the following best defines " medium of exchange
tatuchka [14]
The answer would be:
A. something with a fixed value that we use for exchange

I hope this helps! :D
5 0
3 years ago
Which source is NOT a valid data source for a mail merge?
Vikentia [17]
I think
Excel worksheet
7 0
3 years ago
Read 2 more answers
Which of the following statements is CORRECT?a. When diversifiable risk has been diversified away, the inherent risk that remain
densk [106]

Answer:

The SML relates a stock's required return to its market risk. The slope and intercept of this line cannot be controlled by the firms' managers, but managers can influence their firms' positions on the line by such actions as changing the firm's capital structure or the type of assets it employs.

Explanation: The SML can help to determine whether an investment product would offer a favorable expected return compared to its level of risk. The formula for plotting the SML is: Required Return = Risk-Free Rate of Return + Beta (Market Return - Risk-Free Rate of Return).

8 0
3 years ago
Currency located at the company $ 600
Drupady [299]

Answer:

$12,900

Explanation:

Amount of cash reported in the balance sheet refers to the cash balance in the bank and other short term investments that may be liquidated in 3 months or less.

It is a current asset in the balance sheet.

Amount of cash on balance sheet = $1,500 + $6,700 + $200 + $100 + $4,400

= $12,900

5 0
3 years ago
Other questions:
  • Oct. 1 Stockholders invest $30,740 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an an
    11·1 answer
  • Over the course of 40 years, sal grew his company to six package shipping stores. with his retirement approaching and the increa
    14·1 answer
  • A(n) ------ model-building techniques where computers examine many potential solutions to a problem, iteratively modifying vario
    6·1 answer
  • A client is interested in investing in the real estate sector, but shows great concern about the possibility of depreciation wit
    12·1 answer
  • Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally
    10·1 answer
  • Rochester Corp. holds a 15% equity investment in LaCrosse Inc. Reedsburg Investments holds 45% of LaCrosse’s stock. On October 1
    10·1 answer
  • A major reason for studying Economics is to gain an understanding of how a nation can best choose to use its ___________ and how
    5·1 answer
  • _____ refer to special temporary project structures established by a company that are isolated from the rest of the organization
    9·1 answer
  • Outline the various challenges that you are likely to face during the implementation of a dam. ​
    12·1 answer
  • What remarketing audiences cannot be defined by default?.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!