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ivolga24 [154]
3 years ago
15

A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If yo

ur required rate of return on this investment is 12 percent, what is the value of each share
Business
1 answer:
sukhopar [10]3 years ago
8 0

Answer:

833.33

Explanation:

The fixed annual dividend is $100

The required rate of return on this investment is 12%

Therefore the value for each share can be calculated as follows

= 100/(12/100)

= 100/0.12

= 833.33

Hence the value for each share is 833.33

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It’s A the nominal interest rate

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As an important control for the occurrence assertion related to sales, the computer starts with the population of daily sales in
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A. bill of lading

Explanation:

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2 years ago
A Caterpillar tractor acquired on January 12 at a cost of $171,000 has an estimated useful life of 25 years. Assuming that it wi
Kay [80]

Answer and Explanation:

a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-

Depreciation

= (Assets cost - Salvage value) ÷ Useful life

= ($171,000 - 0) ÷ 25

= $6,840

For First year = $6,840

For Second year = $6,840

It would be the same for the remaining useful life

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First we have to determine the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 25

= 4%

Now the rate is double So, 8%

In year 1, the original cost is $171,000, so the depreciation is $13,680 after applying the 8% depreciation rate

And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60

7 0
3 years ago
Why are junk bonds more popular during a bear market?
Dominik [7]
Many times junk bonds are a high risk bond, but are also a high return. They are more popular during a bear market for this reason only. Sine they have a high return it compensates for the high risk. The junk bonds can also help a persons personal portfolio. Junk bonds also issues with a 10 year term or less. A bear market is when there is a steady drop or stagnation in the market over a period of time. 
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In "Claiming an Education," Adrienne Rich uses logos, ethos, and pathos.

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