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musickatia [10]
3 years ago
6

Lerman Company has preferred stock outstanding. It pays an annual dividend of $20. If its current price is $70, what is the disc

ount rate investors are using to value the stock
Business
1 answer:
Tpy6a [65]3 years ago
5 0

Answer:

the discount rate is 28.57%

Explanation:

The computation of the discount rate is shown below:

Discount rate = Dividend ÷Share Price of Preferred stock

= $20 ÷ $70

= 28.57%

By dividing the dividend from the price of the preferred stock we can get the discount rate

Hence, the discount rate is 28.57%

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Answer:

Note: The organized question is attached

<u>Description of each transaction</u>

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2 years ago
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DaniilM [7]

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To properly measure an asset on the balance sheet, any related valuation allowance should be reported A. Contra to the particula
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