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Paul [167]
4 years ago
5

West Coast Ltd. wants to issue preferred stock that pays an annual dividend of $6.80 a share. The company has determined that st

ocks with similar characteristics provide a 12.25 percent rate of return. What should the offer price be
Business
1 answer:
egoroff_w [7]4 years ago
5 0

Answer:

The offer price will be $55.51

Explanation:

The constant cash flow over a indefinite period of time is the perpetuity. The dividend payment on the preferred is also considered as perpetuity because it pays the constant amount of dividend and there is no time limit for the payment.

Value of the preferred share can be determine by following formula

Value of Perpetuity / Cash flow / required rate of return

Price of share = Dividend Payment / Rate of return

Price of share = $6.8 / 12.25% = $55.51

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True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision. True fa
AysviL [449]

Answer:

<em>Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision</em><em> </em><em><u>True</u></em>

6 0
2 years ago
Which of the following statements is correct concerning analytical procedures used in plan- ning an audit engagement?
nata0808 [166]

Answer:

b. They typically use financial and non-financial data aggregated at a high level.

Explanation:

The statement which is correct concerning analytical procedures used in planning an audit engagement is statement B  because the use of financial and non-financial data aggregated at a high level is commonly used during preliminary analytical procedures. Evaluations of financial knowledge gained by the research of PLAUSIBLE RELATIONSHIPS between both financial plus non-financial data. Typically use financial and non-financial data AGGREGATED AT A HIGH LEVEL, they are a Type of Audit Procedure as well as a Type of Evidence (usually practiced in alliance with different kinds of data) as the aforementioned that it is known as analytical procedures.

4 0
3 years ago
Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $260,000,
xxMikexx [17]

Answer:

$53,100

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the net operating income/loss is the difference between the sales and the total costs

As such,  the company's net operating income

= $260,000 - $140,100 - $66,300 + $570,000 - $319,800 - $125,500 -  $125,200

= $53,100

7 0
3 years ago
What happens to price in normal backwardation?
makkiz [27]
I think it is when the price is lower then in the past. I am not sure.
5 0
4 years ago
The ________ of a business message summarizes what you want your audience members to do or think and why they should do so.
BartSMP [9]

The <u>main idea</u> of a business message summarizes what you want your audience members to do or think and why they should do so.

The primary purposes for sending commercial enterprise messages are commonly to tell and to persuade and visible cues, in addition, to permit the sender to tailor the message to the target market.

A message (verbal or nonverbal, or both) is the content material of the communication technique. The originator of the message in the communique procedure is the sender. The sender conveys the message to a receiver.

Knowing your target audience lets you make selections approximately what records you need to include, how you need to set up those records, and what sort of assisting details might be important for the reader to recognize what you're providing. It additionally influences the tone and structure of the record.

Learn more about business here: brainly.com/question/24448358

#SPJ4

5 0
1 year ago
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