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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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Which factor most directly affects a furniture company's supply?
Zina [86]

Answer:Which factor most directly affects a furniture company's supply?

Explanation:

5 0
3 years ago
Suppose Germany produces only smartphones and tablets. The resources that are used in the production of these two goods are not
miss Akunina [59]

Answer:

The correct answer is: The shape of Germany production possibilities frontier (PPF) should reflect the fact that as Germany produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone remains Constant.

Explanation:

The frontier of possibilities varies the production of a particular good as productive resources are assigned. However, in practice, economies produce more than one good, and since productive inputs are limited, the allocation of them to produce one good means to stop allocating resources for the production of another, this implies that by producing more than one determined well you must "sacrifice" units of the other, this concept is known as opportunity cost. When increasing the production of one good necessarily implies decreasing the production of another, then we are facing an efficient allocation of resources.

The production possibilities frontier (F.P.P.) is called the outer section of the production possibilities set. When an economy is in the F.P.P. It is not possible to increase the production of one good without diminishing the production of another, so any basket that is in the F.P.P. It is a combination of efficient production.

The production possibilities frontier allows us to directly visualize the allocations of resources that are efficient and also the opportunity cost of production, to the extent that we can determine through it how much we should decrease the production of a good, when we want to increase The production of another.

For economists all costs are opportunity costs, so this concept is important for any economic analysis.

4 0
3 years ago
FutureForm, a U.S. company, imports microprocessors from Japan. The company must pay in yen to the Japanese supplier within 30 d
Gnoma [55]

Answer:

The price per microprocessor will increase to $1,666.67 from $1,363.64 which was the price when they received them.

Explanation:

At the day that FutureForm receives the microprocessors, it owes its Japanese supplier $1,363.64 per microprocessor. Since FutureForm didn't have the money to them immediately and had to wait one month to collect it, the amount owed per microprocessor increased to $1,666.67. This happened because the Japanese yen appreciated against the US dollar and now you need more US dollars to buy the same amount of Japanese yens.

7 0
3 years ago
The efficient-market hypothesis:a) has little empirical validity. b) implies that security prices properly reflect information a
Murljashka [212]

Answer:

b) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.

Explanation:

The efficient market hypothesis states that the price of assets in the market reflects all information that is available. This means that it is impossible to gain unfair advantage over others in the market as a result of privileged information about a transaction.

In this scenario a buy and hold strategy will be most effective because investors can buy assets and hold them for a long time regardless of short term fluctuations. Sale is made at a optimal time.

Active traders will be subject to short term fluctuations and will most likely not perform like the buy and hold traders

8 0
3 years ago
A client would like to implement a management information system that integrates all functional areas within an organization to
ahrayia [7]

An enterprise resource planning system is most effective for this application.

<u>Option: C</u>

<u>Explanation:</u>

The centralized monitoring of large corporate activities, mostly in live time, and through software often technology mediation, highlighted as a Enterprise resource planning. ERP is generally understood as a type of information management tools that a company can utilize to acquire, store, process, and analyze data from multiple business operations.

It offers a constantly updated and organized representation of key firm operations by utilizing popular databases managed by a database management process. ERP programs monitor the capital of firm like: raw material, money, manufacturing capabilities and business obligations status like: order of purchase and payroll.

3 0
3 years ago
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