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irakobra [83]
3 years ago
8

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.90 dividend every year, in perpetuity. If thi

s issue currently sells for $80.55 per share, what is the required return
Business
1 answer:
igomit [66]3 years ago
4 0

Answer:

The required return is 7.32%

Explanation:

In order to calculate the required return we would have to calculate the following formula:

Required return= annual dividend/current price

According to the given we have the following:

annual dividend=$5.90 dividend

current price =$80.55 per share

Therefore, Required return=$5.90/$80.55

Required return=7.32%

The required return is 7.32%

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Suppose a stock had an initial price of $57 per share, paid a dividend of $1.1 per share during the year, and had an ending shar
kolbaska11 [484]

Answer:

12.46%

Explanation:

Data provided

Dividend income = $1.1

Ending share per price = $63

Initial price = $57

The computation of the percentage total return is shown below:-

Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price

= ($1.1 + ($63 - $57)) ÷ 57

= ($1.1 + $6) ÷ 57

= $7.1 ÷ 57

= 0.12456

or 12.46%

6 0
3 years ago
A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group
boyakko [2]

Answer:

the Hawthorne effect

Explanation:

The Hawthorne Effect is the theory that states that people are more likely to modify their behavior because they are under study or evaluation and not as a result of response to stimuli.

Therefore, according to the given question, Pete Jazoni's output nearly doubled once it was selected for special attention by experts. This is an example of the Hawthorne effect.

7 0
3 years ago
At a movie the ater box office, all tickets are pre-numbered. At the end of each day, the beginning ticket number is subtracted
Mrrafil [7]

Answer:

A. Some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance.

Explanation:

The control of selling fresh prenumbered tickets from the last number sold on the previous day is a control that detects tickets sold the previous day.

If tickets were sold on the previous day, they can be reused today. So having a unique number on them is an ideal way to monitor the range of tickets issued today.

Only those within the range will be allowed to enter the theatre.

4 0
3 years ago
Why is there scarcity even in an affluent country like the united states?.
Law Incorporation [45]

Answer:

THERE ARE SCARCITY EVEN IN AN AFFLUENT COUNTRY LIKE THE UNITED STATES BECAUSE WANTS ARE LIMITED BUT NEEDS ARE UNLIMITED. SOME PEOPLE ARE POOR WHILE OTHERS ARE WEALTHY

7 0
3 years ago
In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was
natali 33 [55]

Answer:

  • b. Cash from Financing Activities  
  • d. Bonds Payable
  • e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

3 0
3 years ago
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