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Georgia [21]
3 years ago
8

Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a

required rate of return equal to 8%. Compute the current price of a share of the preferred stock.
Round to the second decimal place.
Business
1 answer:
umka2103 [35]3 years ago
7 0

Answer: $75

Explanation:

Using the Gordon Growth Model:

Price of stock = Next year dividend / (Required return - growth rate)

Growth rate is 0% as dividend does not change per year.

Price of stock = 6 / 8%

= $75

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Answer:

The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making sure that the organization's strategic goals cascade down through the organization so that the employees can work together in pursuit of common ends. Peter's Group is using aligned goals in their organization.

Explanation:

Aligned goals is what organizations do in order to gather all the forces towards the achievement of  common objectives.

6 0
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Describe why it is important to understand how businesses impact you.
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because they are the ones that provide me goods and services.

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One recurring problem in supply chain management is when information about the demand for a product gets distorted as it passes
vfiekz [6]

Answer: Bullwhip Effect

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3 years ago
Stock prices tend to ignore unexpected changes in dividend payments. Companies prefer to cut dividend payments rather than borro
Shkiper50 [21]

Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.

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Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.

Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.

7 0
3 years ago
Company A makes canned tomatoes. The plant operates around the clock and has a long conveyor belt to take the
Dima020 [189]

<u>Answer:</u>

bulk

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