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
kompoz [17]
2 years ago
12

Morristown Industries has an issue of preferred stock outstanding that pays a $12.60 dividend every year in perpetuity. If the r

equired return of this issue is 15.75%, what is the price per share
Business
1 answer:
lilavasa [31]2 years ago
6 0

Answer:

$80 per share.

Explanation:

Given: Dividend= $12.60

           Rate of return= 15.75%

  Now, finding the price per share.

Formula; Price per share= \frac{Dividend}{Rate\ of\ return}

⇒ Price per share= \frac{12.60}{15.75\%}

⇒ Price per share= \frac{12.60}{0.1575}

∴ Price per share= $80 per share.

Hence, price per share is $80 for Morristown Industries.

You might be interested in
Murphy company has three departments, and uses a multiple predetermined overhead rate system. Department A manufactures parts in
oksano4ka [1.4K]

Answer:

1. Department A  (manufactures parts in a highly automated process): Machine hours

2. Department B  (assembles the parts by hand): Direct labor hours

3. Department C (places completed units in a heat chamber to sterilize the before they are shipped out): Batches

Explanation:

Machine hours is used to measure factory overhead as against the goods produced. This method is usually applied in production environment using machine, and where the most activities are done by machines.  On the other hand direct labor is used when the production of goods and services is done by human hands, and not machines. While Machine hours is the appropriate overhead allocation rate for Department A, Direct Labor hours will be appropriate for Department B. Hence Batches will be appropriate for Department C.

4 0
3 years ago
Two power plants provide power to Chapel Hill residents: plant UNC and plant Duke. Both plants burn coal to produce electricity,
Sveta_85 [38]

Answer:

a. The socially efficient levels of abatement for UNC power plant is 10.

Explanation:

Note: See the attached Microsoft word file for the calculations of the anwers above.

7 0
3 years ago
Sayon Co. issues 200,000 shares of $5 par value common stock to acquire Trask Co. in an acquisitionbusinesscombination. The mark
enot [183]

Answer:

option (c) $1,365,000

Explanation:

Given;

Number of shares issued = 200,000

Par value of the common stock = $5

Market value of the common stocks= $12

Legal and consulting fees = $110,000

Registration and issuance costs for the common stock = $35,000

Now,

The par value of the stocks

= Number of shares issued × Par value of the stocks

on substituting the respective values, we have

= 200,000 × $5

= $1,000,000

and, the Market value of the stocks

= Number of shares issued × Market value of the stocks

on substituting the respective values, we have

= 200,000 × $12

= $2,400,000

Therefore,

the net additional paid in cash

= Market value of the stocks - par value of the stocks - Registration and issuance costs

on substituting the respective values, we have

= $2,400,000 - $1,000,000 - $35,000

= $1,365,000

The legal and the consulting fees is not included above because they are paid in cash.

Hence, the correct answer is option (c) $1,365,000

5 0
3 years ago
Match the pairs to their respective categories.
Anestetic [448]
*matches pairs to respective categories*
4 0
3 years ago
Circumstances) People, constraints, and consumption are some of the key factors that will impact on your critical thinking and s
zimovet [89]

Answer:

True

Explanation:

Critical thinking is the thinking that deals in analyzing the facts so that the judgment could be created. It involves various things like rationality, non-biased, proof-based on facts provided, etc

Here the factors that directly impact the critical thinking are people, constraints and the consumption this results in shaping your goals and objectives you made

hence, the given statement is true

8 0
2 years ago
Other questions:
  • Soho Bottling was started in a kitchen in Brooklyn, New York, and makes soft drinks. After going through the various steps in th
    11·1 answer
  • In the broadest sense, economics studies the choices that
    9·1 answer
  • Problem statements in business reports are most effective when their matter-of-fact tone downplays the urgency of the problems.
    6·1 answer
  • What is the overall purpose of​ differentiation?
    9·1 answer
  • Why is looking at cash flow an important step in a good financial plan?
    11·2 answers
  • Peter and Marcia, both age 34, can each pay $650 a year each on life insurance for themselves. About how much is the face value
    5·1 answer
  • A company purchased a tract of land for its natural resources at a cost of $1,000,000.
    6·1 answer
  • Suppose that the stock return follows a normal distribution with mean 20% and standard deviation 40%. What is the 5% VaR (value-
    11·1 answer
  • Suppose that U.S. Consumption spending is ​$12.4 ​trillion, gross private domestic investment is ​$2.3 ​trillion, government spe
    6·1 answer
  • about how many years will it take for $100,000 placed in a bank account at 7% interest rate compounded annually to double?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!