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Contact [7]
3 years ago
7

Holdup Bank has an issue of preferred stock with a $8 stated dividend that just sold for $92 per share. What is the bank's cost

of preferred stock?
Business
1 answer:
kkurt [141]3 years ago
8 0

Answer:

Discount rate will be 8.6 %

Explanation:

We have given that dividend = $8

And stock is given as  = $92

We know that stock value is given by

We have to find the discount rate

Stock value =\frac{dividend}{discount\ rate}

So discount rate =\frac{dividend}{stock\ value}=\frac{8}{92}=0.086=8.6 %

So discount rate will be 8.6 %

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Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $50
xxMikexx [17]

Answer:

The company pays $ 500 yearly fee to use Mega Tax Software which is record as fixed costs. Fixed costs do not differ with the variation in the manufacturing levels. Conversely, the fixed cost per unit declines as manufacturing increases, as the same fixed costs are extent over more units. Also the fixed costs per unit rises as the production decreases. Therefore when the production level increased from 300 units to 500 units, the fixed costs per unit reduced and since the variable cost per unit is the same at $ 10 per unit regardless of the levels of production, the total cost per return declines from $ 11.67 to $ 11.

7 0
3 years ago
Many businesses find blogging a valuable tool for communicating with employees, customers, and the larger public. Knowing how to
Marina86 [1]

Answer: b. Public relations

Explanation: Blogging in a good way for businesses to get people interested in their products.

Hope this helps!  :)

3 0
4 years ago
Over the past few decades, income inequality in the United States, measured by the relative shares of total income earned by the
docker41 [41]

Answer: All the options given are correct.

Explanation:

Income inequality is the differences in income of people. It is the aim of every government to reduce income inequality in a country by taking appropriate measures such as the use of progressive tax, infrastructural provision etc.

There are different causes of income inequality in an economy. One of the causes is differences in people's ability. Some peolle are more talented than others e.g footballers and actors. As a result, they may earn higher income than others.

Also, one who works longer hours is likely to make more money than others who work for shorter hours. Some people might also get wealthy through luck.

7 0
3 years ago
A Resort in Hawaii is now available for sale for $400 million. Hilton Hotels Corp. and Marriott International Inc. are both cons
Agata [3.3K]

Answer:

b. Hilton should purchase the resort, but Marriott should not.

Explanation:

given data

Resort sale = $400 million

free cash flow = $45 million

time = 20 year

return = 8%

risk-free rate = 2%

Hilton beta =1.1

Marriott beta = 1.3

solution

we get here first NPV of the resort when the cost of capital is

Re = risk-free rate + beta( Rm - Rf)    ........................1

Re = 2 + 1.1 ( 8 - 2 )

Re = 8.6%

and

The NPV will be as

cash flow to free cash flow is = 45 million

so NPV is $22.767

and

as that at cost of capital of 9.8%,

The NPV will be

NPV = $11.6011

so we can say that Hilton should pursue the project due to the positive NPV

but due to the negative NPV here Marriott should not pursue the project.

4 0
4 years ago
"corporate social responsibility (CSR) refers to"
Mademuasel [1]

Answer:

The correct answer is letter "C": ethical expectation that society has for business.

Explanation:

Corporate Social Responsibility (CSR) refers to the efforts companies make to have a positive influence on their surrounding environment and society. CSR implies operating harming the atmosphere the least possible, training employees in ethical behavior inside and outside the organization and engaging in charitable activities in favor of the most in-need.

CSR takes care of three dimensions: <em>planet, people, </em>and <em>profit</em>. <em>CSR, also called, corporate citizenship, reflect the view society has of the business.</em>

3 0
3 years ago
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