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Katyanochek1 [597]
3 years ago
11

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1

.65 on this stock. What is the current price of this preferred stock given a required rate of return of 11.6 percent?
Business
1 answer:
Olegator [25]3 years ago
5 0

Answer:

$56.89

Explanation:

The computation of the current price of this preferred stock is shown below:

= Annual dividend ÷ required rate of return

where,

Annual dividend equal to

= Quarterly dividend × number of quarters in a year

= $1.65 × 4 quarters

= $6.6

And, the required rate of return is 11.6%

Now put these values to the above formula  

So, the price would equal to

= $6.6 ÷ 11.6%

= $56.89

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If jjones withdraws 50000 from her personal account and deposits cash into a business account how to know 2hich accts to put in
Lina20 [59]

Answer:

The actions to write in the ledger are two.

Explanation:

When Jones withdraws from his personal account he is making a debit action, which indicates that this asset is decreasing and when that money is deposited to a commercial account he is making a credit action, which indicates that this asset is growing.

3 0
3 years ago
Brighton, Inc., manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borr
Igoryamba

Answer:

Brighton, Inc.

a) Schedules Computing Inventory Budgets by months

a1) for Production:

                                          April           May          June       Total

Beginning Inventory     120,000    100,000      120,000        120,000

Units Produced            500,000   500,000     500,000     1,500,000

Inventory available      620,000   600,000     620,000     1,620,000

Less Ending Inventory 100,000    120,000      120,000        120,000

Units sold                    520,000    480,000     500,000    1,500,000

a2) Raw Materials Purchases in pounds

                                                   April           May

Ending inventory                    50,000        50,000

Raw materials required        125,000       125,000

Raw materials available        175,000       175,000

Beginning Inventory              58,000        50,000

Purchases                            117,000        125,000

Purchases value $4 per pound $468,000    $500,000

b) Projected Income Statement for May:

Net Sales                                                          $1,970,000

Cost of goods sold:

Finished Beginning Inventory $480,000

Cost of production                   1,460,000

less closing inventory                480,000       $1,460,000

Gross profit                                                        $510,000

Selling expenses                    $200,000

Administrative expenses          155,000         $355,000

Net Income                                                      $155,000

Explanation:

a)    Sales =                             $2,000,000

less cash discounts (1%)            ($20,000)

less bad debts expense (0.5%) ($10,000)

Net Sales =                             $1,970,000

c) Sales Budget

                         April           May            June             July              Total

Sales units   600,000     500,000      600,000       600,000       2,300,000

Sales value$2,400,000 $2,000,000 $2,400,000 $2,400,000$9,200,000

d) Cost of Production:

                                                      May  

Cost of raw materials used   $500,000

Labor                                        390,000

Variable overhead                    180,000

Fixed overhead                       390,000

Total                                    $1,460,000

e) Budgets are financial tools to forecast an entity's projections for sales, production, expenses, and cash balances.  They help to anticipate developments ahead of time in order to plan for them and to prepare for unanticipated occurrences.

4 0
2 years ago
Assess how entrepreneurship may be a viable option to counteract unemployment​
makkiz [27]

Answer:

As we've lightly touched on already, entrepreneurial enterprises provide citizens with paying jobs in order to operate and grow. They also provide employees with the means to further grow one's own earning potential through training and on-the-job experience.

3 0
3 years ago
How does columbus describe the role and rights of women in native american cultures?
OleMash [197]
<span>Women in native American communities are held at a high regard, are well respected, and have the rights and liberties of men in certain situations. When married, the husband joined the woman's family as the family line was always traced through the women of the family. If a woman decided that she wanted a divorce from her husband, her decision was easily made when she put her husband out of the house to leave.</span>
7 0
3 years ago
Valence Electronics has 213 million shares outstanding. It expects earnings at the end of the year of $800 million. Valence pays
Dvinal [7]

Answer:

$75.12 million

Explanation:

For computation of Valence's share price first we need to find out the share price which is shown below:-

Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)

= (40% × $800 million) ÷ (9% - 7%)

= (0.4 × $800 million) ÷ (0.09 - 0.07)

= $320 million ÷ 0.02

= $16,000 million

Now, Valence's share price

= Total value ÷ Outstanding total shares

= $16,000 million ÷ 213 million

= $75.12 million

3 0
3 years ago
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