Answer: $100
Explanation:
A value of a Preferred Stock is calculated like a perpetuity which means that it is derived by dividing the cash-flow by the annual interest rate.
This Stock pays $3 per quarter. It will pay _____ per year;
= $3 * 4
= $12
Value of Preferred Stock = 
= 
= $100
Answer:
a. $11
b. $22
c. Range is $11 to $22
Explanation:
Part a
The lowest acceptable (minimum) transfer price is the price that is acceptable to the transferring division and out of a range of prices, it could be that which would be the best for the company.
Minimum Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
where,
Variable Costs per unit = $11
Internal Savings = $0
Opportunity Cost = $0
therefore,
Minimum Transfer Price = $11
Part b
The highest acceptable(maximum) transfer price is the maximum price that causes the receiving or buying division to breakeven. It could also be the price at which they could purchase the product in the market at arms length position.
therefore,
Maximum Transfer Price = $22
Part c
The best range of acceptable transfer prices must encourage goal congruence, must facilitate measurement of performance and divisions should function autonomously.
therefore,
The best range of acceptable transfer prices is within the Minimum and Maximum Transfer Price.
Answer:
The correct answer is both the compensation for inflation as well as the real rate of interest.
Explanation:
Nominal rate of interest is the one which is described as the rate of interest before taking or considering the inflation into the account. The nominal could also defined as to advertised or state the rate of interest on the loan, without considering the account of any fees or any interest which is compounding.
So, the nominal rate of interest is the one which involve or comprise of the compensation for inflation and the real interest rate of the interest.
Financial interest of the stockholders need to be matched with the type of investment strategy that the stockholders choose to diversify their portfolio.
Issue often arise when stockholders hope to exert a certain type of control to the company because they feel entitled to after purchasing the stocks. To address this, i would create a code of conduct that clearly specify the roles that the shareholders can and cannot take after making the purchase.
Answer:
$72.206 million
Explanation:
To get Chester Corporation's total assets, recall that;
Total liabilities = Total assets - (Retained earning + Total common stock)
Given that;
Total assets = ?
Retained earning = $18.275 million
Total liabilities = $51.391 million
Total common stock = $2.540 million
Total liabilities = Total assets - (Retained earning + Total common stock)
$51.391 = Total assets - ($18.275 + $2.540)
$51.391 = Total assets - $20.815
Total assets = $51.391 + $20.815
Total assets = $72.206
Therefore, Chester Corporation's total asset is $72.206 million.
