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irakobra [83]
2 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]2 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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At the end of Year 2, retained earnings for the Baker Company was $3,350. Revenue earned by the company in Year 2 was $3,600, ex
garik1379 [7]

Answer:

Retained earnings at the beginning of Year 2 is $2,950.

Explanation:

Given the following:

Retained earnings at the end of Year 2 = $3,350

Revenue earned by the company in Year 2 = $3,600

Expenses paid during the period = $1,900

Dividends paid during the period = $1,300

Retained earning for year 2 = Revenue earned by the company in Year 2 - Expenses paid during the period - Dividends paid during the period = $3,600 - $1,900 - $1,300 = $400

Retained earnings at the beginning of Year 2 can be using the following formula:

Retained earnings at the end of Year 2 = Retained earnings at the beginning of Year 2 + Retained earning for year 2 .......... (1)

Substituting the values into equation (1) and sole for Retained earnings at the beginning of Year 2, we have:

$3,350 = Retained earnings at the beginning of Year 2 + $400

Retained earnings at the beginning of Year 2 = $3,350 - $400 = $2,950

Therefore, retained earnings at the beginning of Year 2 is $2,950.

5 0
3 years ago
One of Simplex Company’s products has a contribution margin of $44,000 and fixed costs totaling $54,000. If the product is dropp
levacccp [35]

Answer:

Decrease by $27000

Explanation:

Given that

Contribution margin = 44000

Initial fixed cost = 54000

Final fixed cost = 37000

Recall that

Net operating income = Contrubution Margin - Net fixed cost.

NOI = 44000 - (54000 - 37000)

NOI = 44000 - 17000

NOI = $27000

Thus, Net operating income decreased by 27000.

5 0
3 years ago
Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recomm
Hitman42 [59]

Answer:

Omni-channel

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the integrated strategy being described within the question is called Omni-channel retailing. This is a strategy that emphasizes simultaneous communication between different communication channels and their supporting resources in order to provide a better user experience.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Fosnight Enterprises prepared the following sales​ budget: Month Budgeted Sales March April May June The expected gross profit r
kvv77 [185]

The question is incomplete as the figures are missing. The complete question is,

Fosnight Enterprises prepared the following sales​ budget:

Month       Budgeted Sales

March         $6,000

April            $13,000

May             $11,000

June            $20,000

The expected gross profit rate is  20​% and the inventory at the end of February was  $7,000.  Desired inventory levels at the end of the month are  30​%  of the next ​month's cost of goods sold.  What are the total purchases budgeted for May?

Answer:

Purchases - May = $10960

Explanation:

To calculate the total value of purchases that are budgeted for May, we first need to calculate the cost of goods sold and the opening and closing inventory for May.

As the gross profit margin is 20%, the cost of goods sold will be 80% of sales.

Cost of goods sold for May = 0.8 * 11000 = $8800

Cost of goods sold for June = 0.8 * 20000 = $16000

Opening inventory - May = 8800 * 0.3  = $2640

Closing Inventory - May = 16000 * 0.3  = $4800

Purchases = Closing Inventory + Cost of Goods Sold for the month - Opening Inventory

Purchases - May = 4800 + 8800 - 2640

Purchases - May = $10960

3 0
3 years ago
Which of the following is not a type of bank
Pani-rosa [81]
What are choices for this question
4 0
3 years ago
Read 2 more answers
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