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
kramer
2 years ago
14

Amazon Corporation has preferred stock outstanding that pays a $11.45 annual dividend. It price is $147. What is the required ra

te of return (yield) on the preferred stock?
Business
1 answer:
Kobotan [32]2 years ago
4 0

Answer:

7.79%

Explanation:

Calculation to determine the required rate of return (yield) on the preferred stock

Using this formula

Cost of preferred stock=Annual Dividend per share/Current price of preferred stock

Let plug in the formula

Cost of preferred stock=$11.45/$147

Cost of preferred stock=0.0779*100

Cost of preferred stock=7.79%

Therefore the required rate of return (yield) on the preferred stock is 7.79%

You might be interested in
What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the
Montano1993 [528]

Answer: $32.05

Explanation:

Beta = 0.7

Dividend = $1.25

Growth rate = 4%

Risk free rate = 3%

Market return = 10%

Since, Required return = risk free rate + beta × (market rate - risk free rate)

We will then slot in the values and.this will be:

= 3% + 0.7 × (10% - 3%)

= 3% + (0.7 × 7%)

= 3% + 4.9%

=7.9%

The price of the stock will then be:

= D1/(Required return-Growth rate)

=1.25 / (0.079 - 0.04)

= 1.25 / 0.039

= $32.05

4 0
3 years ago
When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit a. Inventory b. Pu
Keith_Richards [23]

Answer:

Accounts payable

Explanation:

In accounting, the term accounts payable refers to the money that is owed by a business to its suppliers, in other words, it refers to the business' short-term debts.

When merchandise is purchased on account and it is returned under the perpetual inventory system, the buyer would then debit accounts payable since it is money that the company would owe to the buyer.

4 0
3 years ago
The owner of a shopping mall wishes to expand the number of shops available in the food court. She has a market researcher surve
Angelina_Jolie [31]

Answer:

The Sampling Bias

Explanation:

Here in this question, the owner is only getting information about the customers which are coming to the mall on weekdays only while neglecting the response which could have been received on weekends.

Therefore this can be termed as a <em>Sampling Bias. </em><em>The perfect way to go after this question is to ask the customers which are coming to the mall on weekends as well as weekdays, throughout the day.</em>

<em>Hope this helps. Good luck.</em>

8 0
3 years ago
Suppose the price of​ regular-octane gasoline were cents per gallon higher in than in . Do you think there would be an opportuni
Romashka-Z-Leto [24]

Answer:

go back and read it again

6 0
3 years ago
THREE reasons except politics for the looting of shops,malls and the destruction of business property in GAUTENG and KwaZulu Nat
Helga [31]

Answer:

poverty,lack of AQ,others do it for fun

8 0
2 years ago
Other questions:
  • The value of all final goods and services produced within a country is termed its __________.
    14·1 answer
  • A recent survey shows that people are retiring at the mean age of 60 and standard deviation 2.5. What proportion of people are r
    11·1 answer
  • In the value chain model for a hospital, pharmaceutical companies and organ donors would be considered as
    14·1 answer
  • What are the requirements for being a dental assistant?
    8·1 answer
  • Sheridan, Inc. is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Endi
    6·1 answer
  • The amount of risk that will remain in a portfolio depends on the degree to which the stocks are exposed to:______
    5·1 answer
  • Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine
    11·1 answer
  • Stephen owns a chemical plant. He is glad that his primary stakeholders are satisfied with the company's growth. However, he is
    13·1 answer
  • Materials were requisitioned for use, $28,200, of which $25,000 were direct materials. The entry is:
    5·1 answer
  • Some companies now use online advertising campaigns and contests to help develop better goods, services, or ideas. This is most
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!