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Georgia [21]
2 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]2 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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3 years ago
Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected
Dafna1 [17]

Answer and Explanation:

The journal entry is shown below

Cash  $46,620

     To Notes Receivable $44,400

     To Interest receivable ($44,400 × 15% × 120 days ÷  360 days)

(Being the cash received is recorded)

Here we debited the cash as it increased the assets and at the same time we credited the interest receivable and the note receivable as it decreased the assets

The same is to be considered

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3 years ago
Examine the equal opportunity laws of another country, not the United States. Are the laws in other countries as much a concern
ira [324]

Answer:

The equal opportunity laws of another country, not the United States is discussed below in details.

Explanation:

An equal opportunity system is a certificate that declares what measures a company takes to eliminate and stop discrimination in the workplace.

The United Kingdom employment equality law is an organization of law that legislates against prejudice-based activities in the workplace.

The prime legislation is the Equality Act 2010, which condemns discrimination in passage to education, government services, private services, and goods, or assumptions in addition to employment.

5 0
3 years ago
Within his company, Vernon has set up a system with inputs, outputs, transformation processes, and feedback. He utilizes a manag
Ray Of Light [21]

Answer: (B) Contemporary

Explanation:

 The contemporary perspective is basically focuses on the behavior of the individual people that are acquired and also modify by the change in the environmental consequences.

The contemporary perspective is one of the type of modern psychology that helps in determine the actual behavior and also the pint of view of the people.

According to the given question, the Vernon set up the system in his company with outputs, feedback, inputs and also the transformation process and he basically managing all the stages of the production.

Therefore, Vernon is basically utilizing a contemporary perspective.  

5 0
3 years ago
Ethics is so important in financial accounting and reporting that the government has passed a law regulating ethical actions of
devlian [24]
<span>Ethics is incredibly important when it comes to financial reporting and accounting, so important that the government saw fit to pass a law that regulates the actions of businesses and how ethical they are when it comes to how they report. The reason that ethics is so very important when it comes to the economy of the country is because if there is a reason to believe that companies are using unethical practices in reporting, it allows investors and creditors to back away and not offer any more financial backing.</span>
7 0
3 years ago
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