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xxMikexx [17]
3 years ago
8

Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60.

If the market value for the preferred stock is $70, what is the required return on this preferred stock?
Business
1 answer:
maksim [4K]3 years ago
5 0

Answer:

10.71%

Explanation:

The computation of the required rate of return on this preferred stock is shown below :

The Required return on preferred stock is

= Dividend ÷ market value of preferred stock

= 7.50 ÷ $70

= 10.71%

By dividing the dividend from the market value of preferred stock  we can get the  Required return on preferred stock and the same is to be considered

therefore we ignored the par value i.e $60 as this is not relevant

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2 years ago
Helen's cat Fluffy has run away, and she places reward posters throughout herneighborhood. Mark sees one of the reward posters a
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.b This is a bilateral contract, and Mark is entitled to nothing because he did not perform

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3 years ago
Why is compound interest preferable to simple interest?
TiliK225 [7]

Answer:

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When negative externalities exist in a market, multiple choice 1 equilibrium output will be greater than the efficient price. eq
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  4. Underemployment equilibrium
  5. Lindahl equilibrium
  6. Intertemporal equilibrium
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2 years ago
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