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Karo-lina-s [1.5K]
3 years ago
12

The Jones Company plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the

required return on this stock is currently 20%, what should be the stock's market value?
a. $ 50
b. $150
c. $ 25
d. $ 10
e. $100
Business
1 answer:
Sever21 [200]3 years ago
7 0

Answer:

c) $25

Explanation:

<em>The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return</em>

Price = Constant dividend/ required return

The constant dividend = Dividend rate × par value

Dividend as be given as $5 per share

requited return - 20%

So the price of the stock would be

Price = 5/0.2

= $25

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ivanzaharov [21]

Answer:

Vision Statement

Explanation:

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Vision Statement is a important point in strategical  planning. It tells what an organization intended to achieve or we can say it highlight the objective of the organization .

Vision Statement should we s<u>hort , simple and clearly specified.</u> It plays an i<em>mportant role</em> in an organization .    

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4 years ago
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4 years ago
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lukranit [14]

Answer:

Money Supply - Decreases / Interest Rates - Increase

Explanation:

Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.

Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.

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Answer:

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MnO2 does not show itself in the equation because it is a catalyst.

A catalyst is a substance that speeds up a chemical reaction, but is not consumed by the reaction; hence a catalyst can be recovered chemically unchanged at the end of the reaction it has been used to speed up, or catalyze.

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