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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%

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Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees.
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The amount of compensation expense Crane should record for 2017 under the fair value method is $207000

<u>Solution:</u>

From the given,

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3 0
3 years ago
Rick deposited $3,100 into an account 13 years ago for an emergency fund. Today, that account is worth $5,280. What annual rate
trasher [3.6K]

Answer:

4.18%

Explanation:

The formula for used for this calculation is given as

Future value = Present( Initial) value  (1 + r)ⁿ

Where n = number of years of the investment = 13 years

Future value  (Amount of the investment after 13 years)= $5,280

Present ( Initial) value (Amount of the investment before 13 years) =  $3,100

r = rate of return

The formula for r is derived as:

r = (Future value/ Present (initial) value)¹/ⁿ- 1

r = ($5,280/$3,100)¹/¹³ - 1

r = 1.0418139573 - 1

r = 0.0418139573

r is always in percentage format

r = 0.0418139573 × 100

r= 4.18139573%

Approximately, the rate of return annually for 13 years  = 4.18%

8 0
3 years ago
Money that has value because the government has ordered that it is an acceptable means to pay debts is referred to as
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Answer:

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Explanation:

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There can be many departments or just a few when _____ a business.
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Answer:

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2 years ago
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