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Oliga [24]
3 years ago
15

The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial ma

nager plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the required return on this stock is currently 20 percent, what should be the stock's market value?
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer: $25

Explanation: Dividends are the returns the shareholders of the company get for investing the the company and bearing the risk and it is calculated as follows :-

Dividend = (value of share) * (rate of return)

Here we have,

Dividend = $5

rate of return = 20%

Therefore,

value\:of\:share\:=\:\frac{dividend}{rate\:of\:return}

value\:of\:share\:=\:\frac{\$5}{20\%}

                                = $25

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Determine the annual financing cost of a 6-month (182-day) 20,000 discounted bank loan at a stated annual interest rate of 10 pe
ratelena [41]

Answer:

10.52%

Explanation:

The computation of the annual financing cost is shown below:

First we have to calculate the interest cost that is shown below:

= $20,000 × 10% × 182 days ÷ 365 days

= $997.26

Now the used funds is

= $20,000 - $997.26

= $19,003

Now the annual financing cost is

= ($997 ÷ $19,003) × (365 days ÷ 182 days)

= 10.52%

We assume there are 365 days in a year

3 0
2 years ago
100 points & brainliest!!
GrogVix [38]

Answer:

i believe its b

Explanation:

8 0
2 years ago
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One primary reason that environmental optimists are not concerned with natural resource depletion is they believe that
Murrr4er [49]

The reason that the environmental optimist are not to be concerned with the depletion of natural resources is because of technological innovation in which they believe that this allows or has the capability of developing synthetic materials in which can replace the natural resources that are depleted.

3 0
3 years ago
FIFO and LIFO Costs Under Perpetual Inventory SystemThe following units of a particular item were available for sale during the
Sidana [21]

Answer:

FIFO - $22,880

LIFO - $21,120

Explanation:

The FIFO inventory system means first in, first out. It means the initial inventory is the first to be sold. The ending inventory would consist of the last purchased inventory.

Ending inventory = 52 ×$440 = $22,880.

The LIFO inventory system means last in, first out. It means the last purchased inventory are the first to be sold . The ending inventory would consist of the initial inventories.

Ending inventory = (36 units × $400) + [(52-36) × 420] =$14,400 + $6,720 = $21,120

I hope my answer helps you

5 0
3 years ago
Country A would have an absolute advantage compared to Country B in the production of corn if
viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others.  A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.  

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.

6 0
3 years ago
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