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alex41 [277]
3 years ago
13

Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of

$3.00, and its current price is $125. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 9.6 % What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 9.95 %
Business
1 answer:
german3 years ago
4 0

Answer:

Annual Rate of Return = 12%

Effective Annual Rate of Return = 9.6%

Explanation:

Nominal Annual Rate of return = \frac{Dividend\: per\: share\: for\: each\: year}{Par\: price\:per\:share} \times 100

Annual Dividend per share = $3 per quarter \times 4 = $12 per share

Current price per share = $125

Par Price per share = $100

Thus Annual Rate of return = $12/$100 = 12%

Effective Annual Rate of Return = \frac{Dividend\: per\: share\: for\: each\: year}{Current\: price\:per\:share} \times 100

= \frac{12}{125} \times 100 = 9.6%

Final Answer

Annual Rate of Return = 12%

Effective Annual Rate of Return = 9.6%

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Jennifer works as a clerk in a company. The essential function of her job is producing memoranda using word processing software.
patriot [66]

Answer:

Americans with the Disability Act of 1990.

Explanation:

Crippling Arthritis can get worse with the time.If the is left untreated then the disease always attack five joints at least.So according to the Americans with the disability act.This act protects individuals form discrimination having disability.So the employer has to provide accommodations to Jennifer.

5 0
3 years ago
On April ​3, a customer returned $ 900 of merchandise that had been purchased with cash to Cooke Supplies. Cooke​'s cost of the
PIT_PIT [208]

Answer:

The Journal entries are as follows:

(i) Sales revenue A/c  Dr. $900

          To Cash  $900

(To record the correction in sales revenue)

(ii) Merchandise Inventory A/c  Dr. $200

           To Cost of Goods sold  $200

(To record the merchandise returned)

Note:

(1) At the time of sale, the cash would have been debited with the amount of $900 and the sales revenue would have been credited with the amount of $900. Now, the cash of $900 should be credited as it was debited earlier.

(2) The inventory account also credited at the time sale, so it should be debited and the cost of goods sold debited at the time of original sale, so it need to be credited.

4 0
3 years ago
Assume that GDP per capita for two countries is displayed in plot with a ratio scale on the y-axis and a linear time scale (in y
jenyasd209 [6]

Answer:

The correct answer that fills the gaps are: constant ; increasing.

Explanation:

GDP per capita, income per capita or income per capita is an economic indicator that measures the relationship between the level of income of a country and its population. For this, the Gross Domestic Product (GDP) of said territory is divided by the number of inhabitants.

The use of per capita income as an indicator of wealth or economic stability of a territory makes sense because through its calculation national income is interrelated (through GDP in a specific period) and the inhabitants of this place.

The objective of GDP per capita is to obtain data that somehow shows the level of wealth or well-being of that territory at a given time. It is often used as a measure of comparison between different countries, to show differences in economic conditions.

7 0
3 years ago
FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading
erma4kov [3.2K]

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

6 0
2 years ago
Vaughn Corporation had 303,000 shares of common stock outstanding on January 1, 2017. On May 1, Vaughn issued 31,200 shares.
Helga [31]

Answer and Explanation:

The computation of the  weighted-average number of shares outstanding  in each cases is as follows:

a. At the time when the shares are issued at cash

= (303,000 × 12 ÷ 12) + (31,200 × 8 ÷ 12)

= 303,000 + 20,800

= 323,800 shares

b. At the time when the shares are issued in the stock dividend

= (303,000 × 12 ÷ 12) + (29,700 × 12 ÷ 12)

= 303,000 + 29,700

= 332,700 shares

4 0
3 years ago
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