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
Rudik [331]
3 years ago
6

When valuing a preferred stock, the type of security that we treat the preferred stock like, for valuation purposes, is

Business
1 answer:
Luba_88 [7]3 years ago
3 0

Answer:

Perpetuity.

Explanation:

This is explained to be a type of annuity which is seen to be in position of receiving infinite amount of payments periodically. It is also tagged to be a financial instrument that is seen to pay consistently but periodically. In our world today, it is put to be the present value of a stream of cash that goes on, into the future, forever. In as much as cash payments are infinite, it’s possible to calculate their present total value because the value of each payment incrementally decreases with each year to the point that it approximates zero. Research has shown that in a lot of cases, economic analysts are seen to use this calculation to determine the value of stocks that pay fixed dividends, real estate that earns rent and annuity insurance products.

You might be interested in
Eve runs a small business. She runs her business operations from a rented office. Eve has paid the office rent worth $10,000 for
MakcuM [25]

Answer:

C. Current liabilities

Explanation:

4 0
4 years ago
Read 2 more answers
Why do so few organizations give human resource planning a high profile?
krek1111 [17]
By writing and allowing the resource to become more in evloved in the system and they would become more into planning a high profile idk if this is right 
5 0
3 years ago
Read 2 more answers
Would it be more profitable to own 200 shares of pennys pickles or 1 share from exxon?
Sauron [17]

Answer :

Exxon  

Explanation :  

It Would Most Definitely want Exxon. with 200 shares of Penny's Pickles You Only have 2%. Exxon You'd Have Around 3.5 %

6 0
3 years ago
Read 2 more answers
Hadley Company is considering the disposal of equipment that is no longer needed for operations. The equipment originally cost $
Vikki [24]

Answer:

If we assume that the company does not have any required rate of return or discount rate associated to the lease payments, then the company should lease the equipment because the differential revenue will be higher ($214,200 ˃ $207,000).

Explanation:

the differential revenue if the equipment is leased:

total lease payments - associated costs = $290,000 - $75,800 = $214,200

the differential revenue if the equipment is sold:

selling price - sales commission = $230,000 - $23,000 = $207,000

If we assume that the company does not have any required rate of return or discount rate associated to the lease payments, then the company should lease the equipment because the differential revenue will be higher. The problem is that in the real world this never happens since the company should discount the lease payments since one dollar today is worth more than one dollar tomorrow. Since we are not given any discount rate, we must assume it is 0.

3 0
3 years ago
If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sell
aalyn [17]

If a firm collects $80 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $120 in revenue when it sells 6 units, then one can infer the firm is a perfect competitor.

Turnover is the total amount of revenue generated from the sale of goods or services related to the company's main activities. Earnings, also known as gross earnings, are often referred to as the "top line" because they are at the top of the income statement. Income or Net Profit is the gross profit or profit of a business.

Simply put, revenue is how much money a company makes and profit is how much money a company can keep after paying all its expenses. Here's another example that clarifies where sales and profit are on the income statement. The black box at the top shows the gross or gross sales.

Learn more about revenue at

brainly.com/question/16232387

#SPJ4

3 0
2 years ago
Other questions:
  • Reesa Mork is a multinational corporation that has good credit ratings. It issues promissory notes to other companies. Based on
    15·1 answer
  • Pablo, who speaks spanish, is in a second-language education class where he interacts with english-speaking and spanish-speaking
    11·1 answer
  • If a company has 100 shareholders and $100,000 of initial capital with the purpose of investing in securities, this company:
    11·1 answer
  • Consider the economies of Kimberlei and Clarkistan, which are identical except that the multiplier in Kimberlei is smaller than
    5·1 answer
  • Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per year, and the loan calls fo
    8·1 answer
  • Chelsea purchased her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see.
    5·2 answers
  • Stereotyping in the workforce has led to
    12·1 answer
  • A project is expected to generate annual revenues of $119,300, with variable costs of $75,400, and fixed costs of $15,900. The a
    14·1 answer
  • C Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, C determined that insurance prem
    8·1 answer
  • Question #3
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!