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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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Answer:

see below

Explanation:

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Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries,  employee benefits, transport,  depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.

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4 years ago
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3 years ago
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4 years ago
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3 years ago
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Demand refers to the number of products or services that consumers will purchase at varying costs at a given time.

<h3>What is a Product?</h3>

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