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inessss [21]
3 years ago
10

McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $5.65 per share with the first dividend exact

ly 15 years from today. If the required return is 3.99 percent, what is the current price of the stock?
Business
1 answer:
Pavel [41]3 years ago
3 0

Answer:

$81.88

Explanation:

We need to first calculate the terminal value which is the value in perpetuity for this preferred stock as shown below:

terminal value of the dividend =dividend/required rate of return

dividend is $5.65

required rate of return  is 3.99%

terminal value of dividend=$5.65/3.99%=$ 141.60  

The preferred stock price is the present value of the dividend's terminal value value

Present  value=terminal value/(1+r)^n

r is the rate of return of 3.99%

n is the of years involved which is 14,15 years from today means the end of the 14th year

present value=$141.60/(1+3.99%)^14=$81.88  

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Drawing on material in the chapter and your own research, prepare a paper describing your views on the major social and legal is
atroni [7]

Answer: Online Sales Taxes

Explanation:

Taxes has grown much bigger for most online retailers, when the like of Amazon started selling products online they were not billed to pay tax, those taxed then where companies who had a building(structure) but now online stores are now subject to taxes.

Some of the tax are much that it affects sellers who are not able to break even and make profit, especially when they don't meet targets they've set for themselves.

7 0
3 years ago
The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical
madam [21]

Answer:

The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200

Explanation:

Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately

The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account

Given

Physical Inventory Account= $63,000

Merchandise Inventory Account= $66200

Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account

Adjusting Entry = $66,200 - $63,000

Adjusting Entry = $3200

6 0
4 years ago
Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade.
Varvara68 [4.7K]

Answer:

Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its currency is the are. Potential output Is 600 billion arcs (Scenario: Fiscal Policy) Look at the scenario Fiscal Policy. If actual output Is 500 billion arcs, to restore the economy to potential output government should by 25 billion arcs.

increase taxes

Explanation:

8 0
4 years ago
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the f
drek231 [11]

Answer:

a. sharing information across the organization

Explanation:

A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.

In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.

This is a failure in the function of sharing information across the organisation.

Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer

4 0
3 years ago
A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of
ser-zykov [4K]

Answer:

y = (x / 100) + 100

Explanation:

First, we need to know the amount of money that it spends on advertising for each extra unit sold. That would be equal to: 2,500 / 25 = 100

This value will be the divisor of the advertising expense (x) to obtain the variable factor of the number of units.

Since 100 units are already sold without investment, this value is taken as fixed and added.

And with the previous data, the formula remains:

y = (x / 100) + 100

4 0
3 years ago
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