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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: Wages are flexible if the economy is self-regulating.

Explanation:

Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.

For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.

For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.

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3 years ago
An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracke
kifflom [539]

Answer:

The bonds after tax yield is given as Pre tax yield X (1-tax rate)

After Tax Yield = 9% X (1-0.36) = 9%X0.64=5.76%

Answer: 5.76%

Explanation:

The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.

To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.

For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.

5 0
3 years ago
Read 2 more answers
In double entry bookkeeping, where should you record assets?
vekshin1
Hi there :-)

The answer is
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Hope it helps
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On Jan 5, a customer returned merchandise that had been purchased earlier on credit. The original sale was for $500, and the cos
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Answer:

Debit Sales Returns and Allowances $500; debit Merchandise Inventory $150; credit Accounts Receivable $500; and credit Cost of Goods Sold $150.

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Based on the information given the required appropiate journal entry to record the return on the books of the seller, in a situation were the goods can be sold to another customer is :

Debit Sales Returns and Allowances $500

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The business environment consists of several factors that affect a business's ability to be successful and operate profitably. C
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There are different kinds of business. The  business environmental force is technological.

<h3>What is business environment?</h3>

Business environment is known to be the overall totals of all the factors that is said to be external to a business firm and that often influence their activities.

It is said to ranges from factors and forces such as customers, competitors, suppliers, government, technological  and others

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