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
Darya [45]
3 years ago
8

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. If you require a return of 8 percent on this stock, how much should you pay today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price
Business
1 answer:
Aloiza [94]3 years ago
7 0

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = \mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}

=\$ 250 /(1+0.08) \wedge 19

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

You might be interested in
A professional gambler moves from a state where gambling is illegal to a state where gam-bling is legal. Most of his income was,
Murrr4er [49]

Answer:

The answer is: A) raises GDP.

Explanation:

If a gambler is a professional gambler (pays income tax on his gambling earnings) then when he moves from a state that prohibits gambling to a state that allows gambling, his earnings will increase the GDP.

The GDP only considers legal income, so illegal activities such as prostitution, drug trafficking, or illegal gambling are not included in the GDP. But if they become legal (e.g. some states legalized marijuana) then they should be included in the GDP.

4 0
3 years ago
What unique things words separate you from other applicants Applying for this funding?
Zolol [24]

Answer:

Having to handle the business side of things while also working on developing a great product wasn't easy, but that challenge helped me grow as a professional. I think a lot of people applying for tech

Explanation:

:D

8 0
3 years ago
Which part of the economy is represented by box C on the circular flow
arlik [135]

Answer: I DONT KNOW

Explanation: PICK ONE

6 0
2 years ago
In its​ year-end income​ statement, Black Knights Company reported cost of goods sold of​ $450,000. Changes occurred in several
torisob [31]

Answer:

The answer is $330,000

Explanation:

Cash paid to suppliers is the total amount of cash paid to its creditors.

We can find that through:

Cost of sold

Minus: Decrease in inventory

Plus: Decrease in accounts payable

=Cash paid to suppliers.

Now let's start:

Cost of sold - $450,000

Decrease in inventory - $160,000

Decrease in accounts payable- $40,000

$450,000 - $160,000 + $40,000

=$330,000

Therefore, Cash paid to suppliers is $330,000

5 0
3 years ago
Ahmad owns an apartment building and has recently had to lower the rent he charges, not only to attract new tenants but also to
Yanka [14]

Answer: Interest rate risk

Explanation:

Interest rate risk is described as the potential for investment loss which result from a change in interest rates. The increase in interest rate declines tell value if a bond or other fixed-income investment, the change that occurs in these bond price is known as duration. Generally, it is the risk that arises for bond owners from fluctuating interest rates. The interest rate risk of a bond depends on how sensitive it's price is to interest rate changes in the market

5 0
3 years ago
Other questions:
  • To create the best design concept for your client, it is generally best to only consider the culture in which the interior desig
    13·1 answer
  • 1. A system held inventory to protect it from uncertainties in supply. In an effort to be lean, this inventory is used and not r
    14·1 answer
  • The ledger of Shamrock, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.
    10·1 answer
  • Applying the concept of opportunity cost to the pollution of a lake, an economist probably would conclude that: pollution should
    7·1 answer
  • In terms of soil behavior in earthquakes, building codes classify a construction site
    9·1 answer
  • Greta contributes property to form Unity Corp. and receives all 100 shares of Unity. A year later, Bjorn contributes property an
    13·1 answer
  • Identify 3 advantage of sales promotion
    14·1 answer
  • When microwaves were new, they typically cost over $300, were bulky and required extensive counter space, and had limited styles
    12·1 answer
  • a company that manufactures general-purpose transducers invested $2 million 4 years ago in high-yield junk bonds. if the bonds a
    7·1 answer
  • Financial measures alone do not capture all aspects of an organization’s performance. Nonfinancial measures can be either qualit
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!