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Fofino [41]
3 years ago
14

Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required

return on this preferred stock is 6.5%, at what price should the preferred stock sell
Business
1 answer:
Ad libitum [116K]3 years ago
4 0

Answer:

The answer is $115.38

Explanation:

Solution

Given that

The annual dividend on preferred stock = $7.50

Required return on preferred stock+= 6.5%

The next step is to find at what price should the preferred stock sell which is given as follows:

The rice of preferred stock = 7.50/6.5%

= $115.38

$115.38 is the price at which the stock preferred was sold.

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Neolithic people practiced metallurgy.
Alika [10]

Answer:

the answer is D

Explanation:

6 0
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Read 2 more answers
You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 %
irina1246 [14]

Answer:

a). I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is  greater than final city dwellers' (0.075 x)

b). The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

Explanation:

a). We can make the following expressions;

Total number of both city dwellers and suburb dwellers=x

City dwellers=30% of x=(30/100)×x=0.3 x

Suburb dweller=70% of x=(70/100)×x=0.7 x

Total number of city dwellers who use your product initially=(20/100)×0.3 x=0.06 x

Total number of suburb dwellers who use your product initially=(10/100)×0.7 x=0.07 x

If we increase the market share in the suburbs by 15%

Number of suburb dwellers=0.07 x+(15/100)×0.07 x

Number of suburb dwellers=(0.07 x+0.0105 x)=0.0805 x

If we increase market share in the city by 25%

Number of city dwellers=0.06 x+(25/100)×0.06 x

Number of city dwellers=(0.06 x+0.015 x)=0.075 x

I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is  greater than final city dwellers' (0.075 x)

b). Percentage of city dwellers that own your product

Percentage=(Initial number of city dwellers/Total number of people)×100

Percentage=0.06 x/(0.06 x+0.07 x)=(0.06 x/0.13 x)×100=46.15%

The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

8 0
3 years ago
Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation as of April 30. The following items wer
Scilla [17]

Answer:

$27,911

Explanation:

Bellows Corp.

Bank reconciliation

As of April 30

Unadjusted book balance    $28,750

Less:

Outstanding checks                  $900

NSF Checks                             $373

Add:

Interest earned                           $74

Error correction                       <u> $360 </u>

Adjusted book balance     <u>$27,911</u>

3 0
3 years ago
Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to gene
Alisiya [41]

Answer:

NPV = $0.89 million

Explanation:

The net present value is an important concept in evaluation a project. It calculates the return a project provides when discounted at the required rate. The initial cost involved in the project is deducted from the discounted cash flows provided by the project and if the NPV is positive, the project should be proceeded with.

The formula for NPV is,

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial outlay

NPV = 7 / (1+0.18) + 7 / (1+0.18)^2 + 7 / (1+0.18)^3 + 7 / (1+0.18)^4 + 7 / (1+0.18)^5 - 21

NPV = $0.89 million

3 0
3 years ago
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