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
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

You might be interested in
A(n) _______ is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt.
Gre4nikov [31]
A. guaranty arrangement
The third party is providing a guarantee that the lender will recover the debt regardless of the borrower's reputation to pay.
3 0
3 years ago
Effective December 15th, 2018, the operating leases will be recorded: A) as an asset and liability on the balance sheet of the l
Shalnov [3]

Answer: C) on the balance sheet of the lessee with value equal to the present value of future lease payments.

Explanation:

According to IFRS 16 and US GAAP ASC 842 which commenced Jan 1, 2019 and Dec 15, 2018 respectively, Lease payments are to be recognized on the balance sheet of the Lessee at the present value of the future payments on the lease.

The discount rate to be used will be implicitly stated in the lease agreement if both parties were able to determine it.

4 0
2 years ago
The IRS has the authority to assess a monetary penalty to who
asambeis [7]

the IRS has the authority to impose penalties on tax professionals.

The IRS is the Internal Revenue Service unit for the United States, which is in charge of collecting federal taxes in the United States and overseeing the Internal Revenue Code, the principal section of federal statutory tax legislation.

It is a division of the Treasury Department and is run by the Commissioner of Internal Revenue, who is picked by the US President for a five-year term. Among the responsibilities of the IRS are helping taxpayers with their taxes, pursuing and resolving cases of incorrect or fraudulent tax files, and managing a number of benefit programs, including the Affordable Care Act.

To know more about IRS :
brainly.com/question/28298661

#SPJ1

5 0
10 months ago
A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The projec
Olenka [21]

Answer:

compromise

Explanation:

Compromise as a conflict resolution strategy is one that involves finding acceptable reasons such that all the parties involved in the conflict have their concerns satisfied partly.

The project manager saying "You both will have to give up something to solve this problem" means that both parties involved in the conflict will have to come to an agreement that suits or benefits both parties.

Cheers.

6 0
2 years ago
If you purchase or obtain a vehicle from someone else, you are responsible for transferring ownership of the vehicle to your nam
SOVA2 [1]
5 days, but it depends on rules of where you are. It can be 10, or maybe even as high as 90.
4 0
2 years ago
Other questions:
  • Which type of insurance has flexible premium payments? A. automobile liability insurance B. earthquake insurance C. index univer
    6·1 answer
  • Dan is responsible for developing the promotional campaign for under armour’s new line of footwear for teens. he will be writing
    7·1 answer
  • Max is in charge of production for a family-owned firm that makes and sells sports gloves including baseball gloves, softball gl
    14·1 answer
  • On October 1, 2021, Stripes Inc. lends $100,000 to another company and accepts a 24-month, 6% note. What is the amount of intere
    5·1 answer
  • A hurracane has hit the oil refineries in lousiana and taxes what happens in the market
    11·1 answer
  • Most students are on strike. Very few students were crossing the picket line. In fact, the postal employees refused to deliver m
    7·1 answer
  • The sole responsibility of management with regard to financial reporting involves preparing and presenting financial statements
    10·1 answer
  • In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of
    6·1 answer
  • What is least likely and most likely to do ?
    7·1 answer
  • Which of the following is not a characteristic of a Successful Resume?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!