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Dmitry [639]
3 years ago
6

Preferred Stock Valuation Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend o

f $2.75 at the end of each year. What is the required rate of return?
Business
1 answer:
Norma-Jean [14]3 years ago
3 0

Answer:

9.17%

Explanation:

Because this is perpetual preferred stock, there’re no tenor fixed but last forever until the company closes/ broken.

Thus the required rate of return is simply calculated as below:

Rate = dividend/ stock price = $2.75/ $30 = 9.17%

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In January, Dieker Company requisitions raw materials for production as follows: Job 1 $970, Job 2 $1,520, Job 3 $810, and gener
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Answer:

Dieker Company

<u>Job Cost Sheet of </u>

                        Job1                             Job2                                   Job3

Materials        $970                            $ 1520                                 $ 810

Factory Labor  $2390                      $ 1730                                  $1560

General Factory

Indirect material  $ 660                     $ 660                                 $ 660

<u>Indirect labor      $ 1920                     $ 1920                                $ 1920</u>

<u>Total                   $ 5940                      $5830                             $  4950</u>

Cost of Job 1

Materials          $ 970

Factory Labor $ 2390

G. Factory        <u>  $ 2580</u>

Total                 $ 5940

Cost of Job 2

Materials          $ 1520

Factory Labor $ 1730

G. Factory        <u>  $ 2580</u>

Total                 $ 5830

Cost of Job 3

Materials          $ 810

Factory Labor $ 1560

G. Factory        <u>  $ 2580</u>

Total                 $ 4950

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3 years ago
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<span>D.
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Answer:

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Now add these figures in the formula above.

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