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Dmitry [639]
4 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]4 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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The two phases of new employee training are orientation and _________ .
KIM [24]
<span>D.
job-specific training </span>
5 0
3 years ago
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To spur trade, Cormoran, Brithea, and Asmakush decided on economic integration where there were no barriers to trade between the
LekaFEV [45]

Answer:

Common market.

Explanation:

In order to spur trade, Cormoran, Brithea, and Asmakush decided on economic integration where there were no barriers to trade between the three countries, they agreed on a common external trade policy, and allowed factors of production to move freely between the three countries. In short, the three countries formed a common market.

A common market can be defined as a formal agreement between a group of countries in which they adopt a common external tariff on products imported from countries outside the union. It is simply a type of market involving the formal organization of countries who have collectively agree to trade freely with one another with eliminated internal tariffs but imposes a common external tariff on trade with other countries.

Common market was founded in 1958 and was made up of countries like Luxembourg, France, Belgium, Netherlands, West Germany and Italy.

The main purpose and advantage of the common market is that, it avails member countries the opportunity to move goods, people, services and capital freely.

4 0
3 years ago
David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of 12 restaurants and employs t
Harrizon [31]

Answer and Explanation:

The computation is shown below;

a) The In-house purchasing cost last year is

= Fixed costs + Variable costs

 =$85,000 + Total number of purchase orders × cost per order

 = $85,000 + 1400 × 15

= $106,000

b)

The outsourcing cost is

Outsourcing cost = Fixed costs +Variable costs

 = $100,000 + Total number of purchase orders × cost per order

= $100,000 + 1400 × 5

 = $107,000

c) Total number of purchase orders = 1600

In-house purchasing cost = 85,000 + 1600 × $15 = $109000

Outsourcing cost = $100,000 + 1600 × $5 = $108000

Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.

6 0
3 years ago
Nelson Manufacturing has the following data:Variable costs are 60% of the unit selling price.The contribution margin ratio is 40
Strike441 [17]

Answer:

The answer is C. $500,000 + .40X = X

Explanation:

$500,000 + .40X = X

Break even point = 500000 ÷ 500

= 1000 units

5 0
4 years ago
Abigail is the owner of a tract of land, but Umberto owns the mineral and excavation rights to that land. Umberto commences exca
Andrej [43]

Answer:

A, absolutely liable for any collapse.

Explanation:

In the cause of excavation of mineral resources on the land Umberto has mineral and excavation rights for, the surface of the land collapses.  This makes Umberto liable for the collapse of the surface of the land and Abigail can have a case against him for destruction of property.

Cheers.

5 0
3 years ago
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