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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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Answer:

$226,000

Explanation:

Ending Inventory As of April 30, is the ending inventory from January to April.

Opening inventory = $159,409

Purchases = $504,000

gross profit =35% of  $671,100

=0.35 x 671,000

=234,000

cost of goods sold = revenue - gross profit

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=$437, 000

cost of goods sold = opening inventory + purchases- ending inventory

=$437, 000=  $159,409 +  $504,000- ending inventory

=$437,000= $663,409- ending inventory.

Ending inventory =  $663,409 - $437,000

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Answer:

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