An owner of which form of stock would receive dividend payments first?

The market value balance sheet for Cherry Pie Corp. reflects a cash of $22,000, fixed assets of $209,000, and equity of $231,000

Blizzard [7]

Answer:

The correct answer is D.

Explanation:

Equity = $231,000

No. of outstanding shares = 5,000

Price of share = $\frac{231,000}{5000}$

Price of share = $46.2

Repurchased shares worth $18,000

No. of shares repurchased = $\frac{18,000}{46.2}$

No. of shares repurchased = 390

When the shares would have been repurchased then the value of equity would decrease by the same amount.

Revised equity = $231,000 - $18,000

Revised equity = $213,000

No. of shares outstanding = 5,000 - 390

No. of shares outstanding = 4,610

Thus, the price of each share would be:

Share price = $\frac{213,000}{4,610}$

Share price = $42.60

8 0

4 years ago

a benefit in receiving a higher education that comes from outside of yourself such as greater job opportunities would be called

Paul [167]

Answer:

Motivational benefit

Explanation:

Remember, anything that brings you a certain level of push towards an expected end is a motivation. For example, having greater job opportunities sets one apart from others, which may lead to a better standard of living which creates a motivational benefit

Thus, we notice may notice many parents encouraging/motivating higher education for their children because of the perceived benefits they believe in so much.

5 0

3 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal

kvv77 [185]

Answer:

A. $86,956.52

B. 15%

C.$83,333.33

Explanation:

a) Calculation for how much will you be willing to pay for the portfolio

First step is to calculate the required rate of return on the portfolio using this formula

The required rate of return on the portfolio= Risk Free Return+Risk Premium

Let plug in the formula

The required rate of return on the portfolio=5%+10%

The required rate of return on the portfolio=15%

Second step is to calculate the Expected value of the portfolio

Expected value of the portfolio= 0.5*50,000+0.5*150,000

Expected value of the portfolio =$100,000

Assuming x is the amount you will be willing to pay for the portfolio which means that:

x*(1+15%)=100,000 OR x= $86,956.52

Therefore You would be willing to pay $86,956.52 for the portfolio.

b) Calculation for What will the expected rate of return on the portfolio be

Expected return on the portfolio= (100,000-86,956.52)/86,956.52

Expected return on the portfolio=15%

Therefore the Expected return on the portfolio will be 15%

c) Calculation for What is the price you will be willing to pay now

In a situation where the risk premium is 15%, which means that the required rate of return will be

Required rate of return=5%+15%

Required rate of return=20%

Therefore the price you will be willing to pay= 100,000/(1+20%)

Price=$83,333.33

3 0

2 years ago

Younger asks zoey, "do you want to buy one of my fishing rods?" this is

Murljashka [212]

The way that Younger asks Zoey about buying her fishing rods is considered to be an offer that is not valid or referred to be as invalid because the way she offers her fishing rod is not definite or specific.

5 0

3 years ago

Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1650375. The bonds mature January

pishuonlain [190]

Answer:

B) $3271.

Explanation:

Since Sheridan Company uses the effective interest method to account for Scott Company bonds, and it purchased them on discount, it must increase its debt investments by:

(market price x effective interest) - (face value x coupon rate) =

($1,650,375 x .055) - ($1,750,000 x .05) = $3,270.63 ≈ $3,271

since the bonds pay a semiannual coupon, the yearly interest rates must be divided by 2.

8 0

3 years ago