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
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

You might be interested in
The step in designing a customer value dash–driven marketing strategy in which a company divides a market into distinct groups o
Molodets [167]
<span>The step in designing a customer value dash–driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market​ segmentation. 
The business market and consumers are divided into subgroups that share common properties and characteristics.</span>
7 0
2 years ago
Blue Spruce University sells 4,500 season basketball tickets at $140 each for its 12-game home schedule. Give the entry to recor
STatiana [176]

Answer:

a. Total revenue received:

= 4,500 * 140

= $630,000

Date                 Account Title                                           Debit              Credit

XX-XX-XXXX  Cash                                                     $630,000

                        Unearned revenue                                                     $630,000

Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.

b. The revenue per game is:

= 630,000 / 12 games

= $52,500

Date                 Account Title                                           Debit              Credit

XX-XX-XXXX   Unearned Revenue                             $52,500

                        Revenue - Ticket Sales                                               $52,500

8 0
3 years ago
Roberto consumes coke exclusively. he claims that there is a clear taste difference and that competing brands of cola leave an u
VikaD [51]
The answer to the question above is "brand names cause consumers to be more sensitive to product differences" based on the result of Roberto's taste test. In the blind test, Roberto did not feel the unsavory flavor from the generic store-coke and he prefers that generic store-coke. This test proves that Roberto's taste is distracted by the brand.
5 0
3 years ago
Every society faces trade-offs because we live in a world of scarcity. Suppose a student-athlete has the opportunity to earn$400
ki77a [65]

Answer:

Earning $700,000 next year playing for a European professional football team

Explanation:

Opportunity cost is the sacrificed option in decision making. The value of opportunity cost is expressed as the forfeited benefits from the next best alternative. Opportunity cost arises due to scarcity of resources, including time and finances.

The student-athlete cannot be in school and engage in play in a professional league in the same year. The student has to pick one option as he or she cannot be in two places at the same time. The forfeited option is the opportunity cost. In the case of many options, the forgone option with the highest value is the opportunity cost. For this student-athlete, $700,000 missed for not playing for a European professional football team is the opportunity cost. It represents the next best alternative from the option chosen.

5 0
3 years ago
Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
Artyom0805 [142]

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

3 0
3 years ago
Other questions:
  • Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 2
    13·1 answer
  • lpha Corporation is interested in expanding its operations to South Africa. Alpha finds a South African company that is in a sim
    8·1 answer
  • Match the word with the best definition.
    12·1 answer
  • According to the​ video, Goodwill has often had to cut prices due to poor​ ______ conditions.
    15·2 answers
  • Sheridan Company shows the following balances in selected accounts of its adjusted trial balance.
    7·1 answer
  • Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t
    5·1 answer
  • Flemington Farms is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earn
    9·1 answer
  • A company issued 5-year, 7% bonds with a par value of $200,000. The market rate when the bonds were issued was 6.5%. The company
    14·1 answer
  • Limitations of Electronic Business can be categorised as technical and non-technical. identify and explain three (3) technical a
    5·1 answer
  • What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!