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beks73 [17]
3 years ago
5

ABC Company's preferred stock pays a constant dividend of $2 per share in perpetuity (Zero Growth). If the required return is 8%

, what price should you be willing to pay for the stock?
Business
1 answer:
mezya [45]3 years ago
6 0

Answer:

Price per share of preference share = $25

Explanation:

Preference dividend is generally fixed, and does not change as there is a standard rate prescribed at the time of issue of preference shares.

Provided here is, dividend for preference shares = $2

Expected return each year = 8%

Expected growth = 0%

Thus, cost or price per share of preference stock = Dividend/Expected Return = $2/8% = $25 each share.

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Explain the hipp of the primary sources below source: letter written by john rolfe
jekas [21]

The correct answer to this open question is the following.

Explain the HIPP of the primary sources below source: "letter written by John Rolfe."

"H" stands for Historical context. John Rolf was an important component in the foundation and success of the Jamestown, Virginia colony, in the North American territory. In the letter, he explains the Governor of the colony, Thomas Dale, his reasons to marry Pocahontas, a Native American Indian woman.

"I" stands for the Intended audience. The Governor of Jamestown, Virginia colony, Thomas Dale. The intention of John Rolfe was to clearly explain his motives, trying to maintain his intact reputation before the people of Jamestown.

"P" stands for Purpose. Rolfe wanted the approval of the Governor, knowing that in those years, Native American Indians were considered savages that first needed to be converted to the Christian religion to be accepted in the colonial society.

"P" stands for Point of view. In this part, we have to understand the point the author is trying to convey. In this case, John Rolfe, an English man, and an important figure that brought the toc¿bacco seed from the Caribbean Islands to grow tobacco crops in Jamestown and made tobacco the king of crops in Virginia wanted to justify his actions but not wanted to compromise his position before the Jamestown society.

6 0
3 years ago
"Tourism sector has become a good source of earning foreign currency in Nepal"Justify this statement with examples
olchik [2.2K]

Explanation:

Tourism has become one of the main income sources for many developing countries like Nepal. Nepal has great potential to become a top destination for tourists as the nation is famous for its snowcapped mountains, abundant flora and fauna, exciting trekking routes and rich cultural and religious diversity.

5 0
3 years ago
Read 2 more answers
What contribution does the retail sector make to the UK economy ?
Rama09 [41]

Answer:

The retail sector consistently accounts for around 5% of Gross Value Added in the UK economy. 14% of all UK investment made by large non financial-sector firms is made by large retailers. Retailers purchase around £180bn worth of goods for resale, supporting £47bn of output from other sectors.

8 0
3 years ago
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An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of in
WARRIOR [948]

Answer:

the present value of the bond is $16.67

Explanation:

given data

time NPER = 12 year = 12 × 2 = 24 semi annual

bond value FV  = $1000

interest PMT = $50

rate of interest = 6% = \frac{0.06}{2} = 0.03 = 3 % semi annual

 

solution

we will apply here formula for current value in excel as given below

-PV(Rate;NPER;PMT;FV;type)    .............1

put here value as

rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50

solve it we get

the present value of the bond is $16.67

4 0
3 years ago
Eventually, Wallace expects that domestic production of the mousetrap will cease altogether. This would happen in the ________ s
jok3333 [9.3K]

Answer:

Maturing product

Explanation:

A product goes through four stages in its life, introduction, growth, maturity and decline. It is during the maturity stage that sales drop as the product has reached almost everywhere. Consumers have accepted the product and now there is no further scope of reach.

Here, mousetrap production is expected to stop indicating that it has entered maturity stage of its life cycle. So, it's a maturing product.

4 0
3 years ago
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