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OleMash [197]
3 years ago
13

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

vidend will not be paid until 20 years from today. The required return on the stock is 7.75 percent.
Required:
On this stock, how much should you pay today?
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
5 0

Answer:

$63.27

Explanation:

Calculation of how much should you pay on the stock today

First step

The Price of stock 19 years from now will be:.

20/0.075

= 266.67

Second step

The Price of stock today will be :

The price of stock from 19 years from now which is:

250 / (1.075)^19

=250/3.951489

=$63.27

Therefore how much should you pay on the stock today will be $63.27

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Book Values versus Market Values In preparing a balance sheet, why do you think standard accounting practice focuses on historic
Pachacha [2.7K]

Answer:

Historical costs is objectively and precisely measured, whereas market values can be difficult to estimate, and different analysts would come up with different

values.

Explanation:

In preparing a balance sheet it is customary for a company to value the assets and other items based on historical costs rather than market values.

For example if an asset is purchased at $20,000, this value will reflect in the balance sheet in subsequent years. Or future calculation will be based on this.

Let's say yearly depreciation is $1,000 then after on year the value will be $19,000, after two years $18,000 and so on.

This is more object than market value which varies at any one time.

Market value for an item will vary depending on location and the market.

6 0
3 years ago
Many college football teams require a "donation" in order to purchase season tickets. This is an example of
Sidana [21]

Answer:

The correct answer is letter "C": two-part pricing.

Explanation:

Two-part pricing is set when there is a fixed price for a good or service but there is a variable price added based in a charge per unit of consumption. The sum of the two prices is the total the consumers have to pay to access the product. Typically, this type of pricing is set in monopolistic markets.

8 0
3 years ago
Johanna Reid, a campaign manager at a child rights organization, recently started working on an illiteracy project. During the p
gayaneshka [121]

Answer:

leading

Explanation:

Leading is one of the critical function of management that determine direction and motivation to the employee for achieve organizational goal. The leader is important in this function to keep employee engaging, motivated and participative in achieve organizational objective. Leaders should lead by example to influence others.

In the given case, Johannna Reid as a leader is trying to motivate and showing direction to achieve targets of project.

5 0
2 years ago
How much money does Ron have left each month after his fixed expenses?
hram777 [196]

What's the question? sorry, but am i missing something?

4 0
3 years ago
Read 2 more answers
Assume that on September 30​, 2017​, AirUS​, an international airline based in​ Germany, purchased a Jumbo aircraft at a cost of
kaheart [24]

Answer:

A.7,650,000

B.2,677,500

C.17,000,000

Explanation:

DATA:

purchase cost = 42,500,000

Useful life = 5 years

Estimated useful life in miles = 5,000,000 miles

Salvage value = 4,250,000

Actual useful life in miles = 350,000miles

Solution

A. Depreciation (straight-line)= \frac{Cost-residualvalue}{Usefullife}

   Depreciation( straight-line)= \frac{42,500,000-4,250,000}{5}

   Depreciation( straight-line)= 7,650,000

B Depreciation (units of production)= (cost-Salvage value) x \frac{Actualunits}{Estimatedunits}

  Depreciation (units of production)= (42,500,000-4,250,000)x\frac{350,000}{5,000,000}

  Depreciation (units of production) = 2,677,500

C. Depreciation (Double declining) =  2 x cost x depreciation rate

   Depreciation (Double declining) = 2 x 42,500,000 x 0.2(w)

   Depreciation (Double declining) = 17,000,000

Working

Depreciation Rate = 1/Useful

Depeciation Rate = 1/ 05 = 0.2

6 0
3 years ago
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