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
VLD [36.1K]
3 years ago
12

8-12 Value of a Preferred Stock A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required

return on the preferred stock is 6.8 percent, what is the value of the stock
Business
1 answer:
Sphinxa [80]3 years ago
4 0

Answer:

Value of stock is $51.47

Explanation:

As the preferred dividend is paid by the constant amount or by predetermined rate there is no growth in this case. The price of preferred share is calculated by using perpetuity method.

Price of the stock = Dividend / rate of return

Price of the stock = $3.5 / 6.8%

Price of the stock = $3.5 / 0.068

Price of the stock = $51.47

You might be interested in
The omission of the adjusting entry to record depreciation expense will result in an
Gemiola [76]

Answer:

B.overstatement of assets and an overstatement of owners' equity.

Explanation:

To recognize depreciation expense,the entries required are

Debit depreciation expense

Credit Accumulated depreciation

The accumulated depreciation is a credit balance in the fixed asset account. Depreciation is also an expense that reduces net income and thus reduces the owners equity.

Hence an mission of the adjusting entry to record depreciation expense will result in an overstatement of assets and an overstatement of owners' equity.

6 0
3 years ago
Financial literacy is the set of skills and knowledge needed to make informed decisions about __________. A. career matters B. m
Likurg_2 [28]

Answer: B. Money matters

Explanation: “Financial” means the management of money, so money matters would be the correct answer.

5 0
3 years ago
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $206,000 of raw materials on credit
neonofarm [45]

Answer:

$14,000 under applied

Explanation:

Given that

Material production = $203,000

Application rate = 150%

The computation of amount of overhead is shown below:-

Overhead = Material production × Application rate

= $203,000 - ($126,000 × 1.5)

= $203,000 - $189,000

= $14,000 under applied

Therefore, for computing the overhead we simply multiply the material production with application rate percentage.

3 0
3 years ago
Which is one of the best ways to avoid credit problems​
liq [111]

paying your bills on time if not your credit will go down

8 0
3 years ago
Kendall is in a convenience store considering which soda to buy. She recalls a commercial for Pepsi she saw on TV last night. Pe
suter [353]
The answer should be 3 bottles
8 0
2 years ago
Other questions:
  • Kate owns a stock with a market price of $31 per share. This stock pays a constant annual dividend of $0.60 per share. If the pr
    11·1 answer
  • Expenditures that add to the utility of fixed assets for more than one accounting period are
    12·1 answer
  • Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month. These units were 45% c
    10·1 answer
  • The new fund had average daily assets of $3.8 billion in the past year. The fund sold $416 million and purchased $516 million wo
    6·1 answer
  • Other things being​ equal, demand is less elastic A. the smaller the percentage of a total budget that a family spends on a good
    5·1 answer
  • Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the mark
    5·1 answer
  • At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agr
    13·1 answer
  • Imagine that a company decides to try a new form of online marketing and advertising. What is the MOST likely impact this will h
    8·2 answers
  • General partners must obtain approval from a majority of the limited partners in order to manage the business. True or False
    5·1 answer
  • A ______ the demand curve represents a change in demand while a ______ the demand curve represents a change in the quantity dema
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!