1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Community college credits never transfer to a 4 year institution
vampirchik [111]
False they can transfer credits
7 0
3 years ago
Etmer enterprises has budgeted sales for the next four months as follows: budgeted sales in units january 7,400 units february 4
Artyom0805 [142]

Units to be produced in February is calculated as -

Units to be produced in February = February sales + Ending inventory of February - Beginning inventory

February sales = 4,600 units

Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units

Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units

Units to be produced in February = 4,600 units + 1,325 units - 1,150 units

Units to be produced in February = 4,775 units

8 0
3 years ago
Gambling is something you should only do if you have discretionary income?
vichka [17]
A. Its true NOT B but its not false.
3 0
3 years ago
Read 2 more answers
Explain two barriers to entry for a new business
Marianna [84]

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). <em>Government regulation</em>- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). <em>Economies of scale</em>- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.


6 0
3 years ago
Read 2 more answers
On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the
dangina [55]

Answer:

$82,580

Explanation:

We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.

DATA

Beginning Inventory  = $215,950  

Inventory purchased  = $192,730

 Sales = $543,500

Calculation

Inventory destroyed  Iestimated) =    Cost of Goods available for sale - Cost of Goods Sold

Inventory destroyed  Iestimated) =  $408,680  - $326,100

Inventory destroyed  Iestimated) = $82,580

Working

Cost of Goods available for sale  = Beginning Inventory + Inventory purchased

Cost of Goods available for sale = $215,950   + $192,730

  Cost of Goods available for sale = $408,680

Cost of Goods Sold  = Sales  - Gross Profits

Cost of Goods Sold = $543,500  - ($543400 x 40%)

Cost of Goods Sold = $ 326,100

4 0
3 years ago
Other questions:
  • If a stricter quota, such as 30,000 tons of apricots, was imposed on this market, we would expect:
    5·1 answer
  • Which answer best describes an unsubsidized federal loan?
    10·1 answer
  • A parent company received dividends in excess of the parent company’s share of the subsidiary’s earnings subsequent to the date
    9·1 answer
  • For which pairs of goods is the cross-price elasticity most likely to be positive? a. peanut butter and jelly b. bicycle frames
    5·2 answers
  • You want to buy a new car, but you can make an initial payment of only $2,400 and can afford monthly payments of at most $500. a
    7·1 answer
  • . At December 31, 2015, Xerox reports $349 million of 8% Series A Convertible Preferred stock. What is the dollar amount of divi
    10·1 answer
  • Maggie and Nate enter into a contract for the sale of car, but Nate later refuses to deliver the goods. Maggie asks a court to o
    14·1 answer
  • A company is considering dropping a product line. What costs would be relevant to the decision? What costs would be irrelevant?
    14·1 answer
  • Find a company that has dramatically turned around its fortunes and improved its performance.
    8·1 answer
  • A stadium is considering an offer from Mass Insurance to change the name to Mass Stadium. The company is offering to pay $1,000,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!