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ExtremeBDS [4]
4 years ago
8

Morris Companies has an issue of preferred stock outstanding that pays a $7.75 dividend every year in perpetuity. What is the re

quired return if this issue currently sells for $68.19 per share?
Business
1 answer:
ahrayia [7]4 years ago
8 0

Answer:

The correct answer is 11.37%.

Explanation:

According to the scenario, the computation of the given data are as follows:

Current price = $68.19

Annual dividend = $7.75

So, we can calculate the required return by using following formula:

Required return = Annual dividend ÷ Current price

By putting the value, we get

Required return = $7.75 ÷ $68.19

= 11.37% (Approx).

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vredina [299]

The advertisement does not constitute an offer because it lacks:

  • Serious intention.
  • Clear and reasonable defined terms.
  • Communication to the recipient.

An offer is an economic term that refers to that property that is willing to be sold for a price. There are also other types of offers that are related to coupons or discounts for consumers to obtain a reward for their loyalty to a brand.

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Based on the above, it can be inferred that Pepsi did not make a true offer with its ad because the part in which a young man appears on a Harrier airplane had a humorous tone, this does not show Pepsi's intention to offer this service.

Learn more about an marketing in: brainly.com/question/10789897

7 0
2 years ago
Consumers in Georgia pay twice as much for avocados as they do for peaches. However, avocados and peaches are equally priced in
Ugo [173]

Answer: Explanation:

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where ,

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In Georgia,  avocados cost twice as much as peaches, so the price ratio is ½ , but in California, the prices are the  same, so the price ratio is 1. Therefore, when consumers are maximizing utility (assuming they buy  positive amounts of both goods), the marginal rates of substitution will not be the same for consumers  in both states. Consumers in California will have an MRS that is twice as large as consumers in Georgia.

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