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RideAnS [48]
3 years ago
11

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.40 dividend every year, in perpetuity. If thi

s issue currently sells for $80.80 per share, what is the required return
Business
1 answer:
PilotLPTM [1.2K]3 years ago
7 0

Answer:

The required return is 7.92%

Explanation:

Required return is defined as the minimum return which the investor expects to accomplish through investing in the project.

The required return would be computed as:

Required return = Dividend paid each year / Selling price per share

where

Dividend paid each year is $6,40

Selling price per share amounts to 480.80 per share

Putting the values above:

Required return = $6.40 / $80.80

Required return = 7.92%

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On January 1, Year 1, Pacific Corporation acquired 75% of Sand Corporation's 200,000 outstanding common shares for $2,850,000. O
Allisa [31]

Answer:

$112,500

Explanation:

The good will to be reported in the balance sheet of the Pacific Corporation as at December 31 shall be determined using the following mentioned  method:

Cost to acquire share of the Pacific Corporation             $2,850,000

Less:Net Assets Acquired of Sand Corporation

       Sand Net Assets                     $3,000,000

       Excess value of land               $200,000

       Excess value of equipment    $150,000

       Fair value of non-compete     $300,000

                                                       $3,650,000                 ($3,650,000)    

Add:Net Assets portion of the Non controlling interest   $912,500

($3,650,000*25%)

Good will                                                                              $112,500

3 0
3 years ago
Planned value is:
Virty [35]

Answer:

The correct answer is B

Explanation:

Planned value is the value which is approved for the work which is to be completed or performed in the provided time. It is the budget which is authorized and allocated or assigned to the work that is needed to completed or accomplished for the activity.

Therefore, it is the budgeted value for the work that needed to be performed or completed to the date.

5 0
3 years ago
What does it mean if an individual receives a pre-approved credit card application?
saveliy_v [14]

Answer:

When you get a pre-approved credit card offer, it comes from a bank or credit card issuer—also known as a credit card company. Those issuers have pre-screened you for eligibility for the card. That screen has determined you're a good candidate for the card

Explanation:

5 0
2 years ago
Sheridan Corp. is a fast-growing company whose management expects it to grow at a rate of 26 percent over the next two years and
Nady [450]

Answer:

Year 1 dividend $2.709

Year 2 dividend $3.413

Year 3 dividend $4.096

Year 4 dividend $4.915

Year  5 dividend $5.898

The present value of the dividends is $ 13.74  as contained in the attached.

Explanation:

The dividend for the 1st year is calculated thus:

DIV1=DIV0*(1+r)

r is the growth rate

DIV1=$2.15*(1+0.26)

DIV1=$2.709

The dividend for the second year is calculated thus:

DIV2=$2.709 *(1+0.26)

DIV2=$3.413

The dividend for year 3 is calculated thus:

DIV3=$3.413*(1+0.2)

DIV3=$4.096

The dividend for year 4 is calculated thus:

DIV4=$4.096*(1+0.2)

DIV4=$4.915

The dividend for year 5 is computed thus:

DIV5=$4.915*(1+0.2)

DIV5=$5.898

Download xlsx
7 0
4 years ago
A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distrib
dalvyx [7]

Answer: B. Decrease

Explanation:

Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.

In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.

Therefore, the correct option is B.

6 0
3 years ago
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