1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexeev081 [22]
2 years ago
15

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

vidend will not be paid until 20 years from today. If you require a return of 10.5 percent on this stock, how much should you pay today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price
Business
1 answer:
brilliants [131]2 years ago
6 0

Answer:

$25.86.

Explanation:

To address this problem we first calculate the present value of all dividend received at time t = 20, then we discount that sum to time t = 0 (now).

The cashflow pattern of this preferred stock is similar to perpetuty.

Stock value at time t = 20 = Dividend/Required rate of return = 20/10.5% = 190.48

Stock value at time t = 0 = (Stock value at time t = 20)/(1 + Required rate of return)^20 = 190.48/(1 + 10.5%)^20 = 25.86.

You might be interested in
Volvo is a well-known quality manufacturer of cars, trucks, and suvs. volvo dealers also provide financing to their customers. t
babymother [125]
I think the correct term to fill in the blank would be mix. A product mix is the all of the products or services lines being offered by a company. The cars, trucks, financing services and the like are all product lines that make up the product mix of Volvo.
8 0
2 years ago
Thirst, a beverage manufacturer, markets its products using the same strategy worldwide. However, the ethnicity contained in the
Umnica [9.8K]

Answer:

Glocalisation

Explanation:

Thirst, a beverage manufacturer is involved in glocalisation by marketing its products using the same strategy globally. However, the ethnicity contained in their ads and the music used in jingles change according to the place. This is to say that they make use of ads which is particular to a specific location taking their culture and language into consideration.

The term "glocalization" was coined by sociologist Roland Robertson in the Harvard Business Review, in 1980.

Glocalization is a combination of the words "globalization" and "localization".

Glocalization is used to describe the ability of a product or service that is developed and distributed worldwide to adjust and accommodate the consumer in a local market.

Consumers in the local market have different taste and preference. Glocalisation is the ability of a product sold globally to fit into the local market at different places. It is an expensive process but firms usually make more benefits from practicing glocalisation.

3 0
3 years ago
The average annual stock return is 11.3%. If you begin your investment portfolio with $2,000, what will your portfolio be worth
Natasha_Volkova [10]

Answer:

6780$

Explanation:

We first find 11% of 2000 by the following equation

2000 x .11

From this we get the annual interest 226$

226$ x 30 = $6780

6 0
2 years ago
Read 2 more answers
All of the following issues can be addressed by a faculty member at your high school except
Orlov [11]

The issues are as follows:

1) nutrition.

2) financial aid.

3) hearing and vision tests.

4) legal help.

The issue that cannot be addressed by the faculty members at the high school is the legal help.

Fourth option is the correct answer.

<h3>What is meant by a high school?</h3>

A high school is the place where the students are studying in the grades from 9th to 12th.

The faculty members of the high school are addressing the issues relating to financial assistance, testing of hearing and eye vision and the nutritional requirements.

Therefore, the legal help being the issue which could not be addressed by faculty members in the high school.

Learn more about the faculty members in the related link:

brainly.com/question/11920261

#SPJ1

7 0
1 year ago
The most effective means of increasing productivity and overcoming economic crisis in the Late Middle Ages came from Select one:
Natalka [10]

Answer:

c. technological advances

Explanation:

The most effective means of increasing productivity and overcoming economic crisis in the Late Middle Ages came from increasing the efficiency of workers and providing workers with better tools

6 0
3 years ago
Other questions:
  • True or false the texas legislature is classified as highly professional, the highest level of institutionalization.
    15·1 answer
  • Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
    10·1 answer
  • The country of Ukanturk has been facing an economic downturn for two consecutive years. To revive the financial condition of the
    6·1 answer
  • A company that has just completed its Initial Public Offering has raised $200 million of capital and has been listed on the NYSE
    12·2 answers
  • Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its div
    9·1 answer
  • Eleanor and Darnell need to decide which one of them will take time off from work to complete the rather urgent task of shearing
    5·1 answer
  • A bank receives a deposit for $50,000. If the bank has a 10 percent reserve
    5·2 answers
  • The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A
    9·1 answer
  • Has social media improved human communication?
    6·1 answer
  • What risk does Sarah run if she chooses a long-term care policy with a short benefit period of 2 years
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!