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
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.

You might be interested in
For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the fol
Veseljchak [2.6K]

Answer:

Income Tax Expense (Dr.) $49,080,000

Deferred Tax Liability (Cr.) $49,080,000

Explanation:

Income tax expense = ( Taxable Income for the year + building and equipment taxable amount + Prepaid Insurance - Liability or contingency Loss ) * Tax rate

Income Tax expense = ( $117,000,000 + $14,700,000 + $2,300,000 - $11,300,000) * 40%

Income Tax expense = $49,080,000

8 0
3 years ago
Compute the yield to maturity of a $100 face value zero-coupon bond that matures in exactly one year and has a current market pr
Step2247 [10]

Answer:

Yield to maturity is 1.51%

Explanation:

Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.

Face value = F = $100

Price = P = $98.50

Year to mature = n = 1 year

Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]

Yield to maturity = $1.5 / 99.25

Yield to maturity = 0.0151

Yield to maturity = 1.51%

5 0
3 years ago
Which of these careers would not require a university education?
sertanlavr [38]
It would be one of those fast food places and or being a nanny or a gilr for beinga butler u get the point ur welcome.
8 0
3 years ago
Greenleaf Manufacturers, Inc. projected sales of 86,000 machines for 2022. The estimated January 1, 2022, inventory is 7,500 uni
Burka [1]

the budgeted production (in units) for 2022 will be 98,100

Production + opening stock= sales+ closing stock

Production + 7,500= 86000 + 19600

Production = 98,100

What do you mean by production budget?

The sales forecast and the anticipated amount of finished goods inventory to be on hand are combined to create the production budget, which determines the number of products that must be made (usually as safety stock to cover for unexpected increases in demand).

How important budgeting is in production process?

A production budget aids the business in planning output levels for varying demand times. A corporation can use the downtime to make an extra products to have on hand for a future period when demand increases if it anticipates that demand and production levels will be low in a month.

Learn more about production budget: brainly.com/question/18803390

#SPJ4

3 0
1 year ago
For Standing Bear Company, sales revenue is $200,000, sales returns and allowances are $5,000, sales discounts are $3,000, and c
polet [3.4K]

The net sales of the given set of data is:

  • $72,000

<h3>What is Net Sales?</h3>

This refers to the addition of a company's gross sales minus the expenses which includes returns, allowances, etc.

The Gross Sales:

Sales revenue: $200,000

Cost of goods sold: $120,000

Total = $200,000 - $120,000

=$80,000

Expenses:

Sales allowances and discounts: $5,000

Sales discounts: $3,000

Total= $5,000 + $3,000

= $8,000

Therefore, net sales = Gross Sales – Returns – Allowances – Discounts

$80,000- $8,000

=$72,000

Read more about net sales here:

brainly.com/question/2934960

6 0
1 year ago
Other questions:
  • Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purc
    14·1 answer
  • Direct and Indirect Costs Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,
    5·1 answer
  • A system that permits banks to hold less than 100 percent of their deposits as reserves is called a
    15·1 answer
  • On March 2, 2015, Best Buy co. announced that it planned to repurchase up to $1 billion of its common shares. The company also a
    10·1 answer
  • Would rocks make a good form of money? Explain why or why not?
    13·1 answer
  • g According to the signaling theory of capital structure, a firm with favorable prospects should raise new capital by issuing __
    12·1 answer
  • Calverd Bank was one of the first banks to open a branch in the rural county of Shirles. Even after many other banks opened thei
    11·2 answers
  • Streep Factory provides a 2-year warranty with one of its products which was first sold in 2017. Streep sold $1,000,000 of produ
    8·1 answer
  • based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $
    7·1 answer
  • Suppose that the bakers of bread face an increase in the price of flour (an input). in the market for bread, this will cause the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!