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
Likurg_2 [28]
3 years ago
12

Graphical Designs is offering 10-10 preferred stock. The stock will pay an annual dividend of $10 with the first dividend paymen

t occurring 10 years from today. The required return on this stock is 5.20 percent. What is the price of the stock today
Business
1 answer:
tresset_1 [31]3 years ago
6 0

Answer:

PV of the stock today = $115.83

Explanation:

We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.

As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.

Present value of perpetuity = Cash flow  / expected rate of return

PV of stock at Year 10 = 10 / 0.052

PV of stock at Year 10 = 192.3076923

The value of the today will be,

PV of the stock today = 192.3076923 / (1+0.052)^10

PV of the stock today = $115.83

You might be interested in
The McDonald's fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers each week. Hamburger patties ar
san4es73 [151]

Answer: 11.42 times

Explanation:

Inventory Turnover = Cost of Goods Sold / Average inventory

Where,

Cost of goods sold = 4,000 quarter-pound hamburgers each week x $1.00 a pound

COGS = $4,000 per week

Average Inventory = 350 pounds of hamburger

Inventory Turnover = 4000 / 350 = 11.42 times

3 0
3 years ago
it is to conceive that a single company can create a product from scratch and sell it without the contribution of other companie
Tju [1.3M]

According to the selling principle, unless a company makes a significant effort to market and promote its products, people won't buy enough of them.

What do you call the process of producing a product?

Generally speaking, product development refers to all phases that go into creating a product, from concept or idea to market release and beyond. In other words, the complete path of a product is incorporated into product creation.

What are the four different methods for developing products?

Following are the four stages of product development: R&D, Growth, Maturation, and Decline. These may be challenging to accurately map out, but as you expand a product over time, you can gain a clearer understanding of the stage it is in.

To know more about products visit:-

brainly.com/question/22852400

#SPJ4

5 0
1 year ago
Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabil
Zepler [3.9K]

Answer:

Total cost= $877,500

Explanation:

<u> First, we need to calculate the unitary variable cost:</u>

Unitary variable cost= 135,000 / 30,000= $4.5

Unitary variable cost= 180,000 / 40,000= $4.5

Unitary variable cost= 225,000 / 50,000= $4.5

<u>Now, the total cost for 35,000 hours:</u>

Total cost= Unitary variable cost*total number of hours + fixed costs

Total cost= 4.5*35,000 + 720,000

Total cost= $877,500

4 0
3 years ago
Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been wor
Alinara [238K]

Answer:

4)Low job satisfaction

Explanation:

From the question, we are informed that Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. But she still truly believes in what the company is trying to accomplish.

In this case , Carol has Low job satisfaction.

Whenever an employee job

has satisfaction, he/she will be motivated, it always result to efficiency in the part of employees, they ten to work harder for acheiving the goal of the organization which in turn result to good overall performance of the organization. But in the situation whereby an employee has

Low job satisfaction, the reverse is the case, he/she will not be happy with task given to him/her, no motivation.

Factors that improve Low job satisfaction are;

✓Assuring job security for employee

✓Job benefits

✓Good relationship between employee and employer.

6 0
3 years ago
The _____ section of the project plan should describe the major project functions and activities and identify those individuals
OleMash [197]

Answer:

The correct answer is letter "C": project responsibilities.

Explanation:

The project responsibilities within the <em>project plan</em> imply recruiting the staff that is going to be in charge of developing the set of actions that could lead to the organization's success. It outlines the main functions each one of them will have to achieve the goal and what type of personal and professional profile those people should have.

3 0
3 years ago
Other questions:
  • Richa, a sales manager at TM Resources, needs to find new markets in which to sell her company's products. Richa assigns her tea
    14·1 answer
  • Which of the following factors would be most likely to lead to an increase in interest rates in the economy? a. Households reduc
    13·1 answer
  • The following costs result from the production and sale of 4,550 drum sets manufactured by Tom Thompson Company for the year end
    10·1 answer
  • To avoid misinformation on the internet, it is best to:
    8·1 answer
  • Which of the following statements about revenues are true? (You may select more than one answer. Single click the box with the q
    14·1 answer
  • Courtney recently ordered a few books online. However, she received the wrong order. She was completely dissatisfied and returne
    5·2 answers
  • Which of the following describes the results of an increase in supply on price and quintity in the market?a. Both price and quan
    10·1 answer
  • Antitrust regulators are likely to prohibit two firms from merging if: __________.
    11·1 answer
  • Asian Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months for the current year are as
    6·1 answer
  • a fully disclosed broker-dealer a) is also known as a full-service clearing agent able to process and clear transactions. b) cle
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!