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lawyer [7]
4 years ago
11

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.40 dividend every year, in perpetuity. If thi

s issue currently sells for $80.80 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
Business
1 answer:
Alina [70]4 years ago
7 0

Answer:

7.92%

Explanation:

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Explain why it is important for a business to take into consideration the following when deciding on the right price for a produ
vladimir1956 [14]
Costs. First and foremost you need to be financially informed. ...
Customers. Know what your customers want from your products and services. ...
Positioning. ...
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Profit.
3 0
4 years ago
You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on
Lubov Fominskaja [6]

Answer:

d. bA < 0; bB = 0.

Explanation:

The possible answers that best describes the historical betas for A and B is bA < 0; bB = 0 because an average annual return for stock B is stable and constant, its beta would be zero. An average annual return for stock A is higher once market’s average annual return is lower or lesser in which therefore indicates that its beta is negative.

8 0
3 years ago
A listing broker should: a. deliberately mislead owners about market value to obtain the listing. b. inflate the list price if t
Vinil7 [7]

Answer:

c. suggest a listing price based on comparable market data.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

Generally, a listing broker should suggest a listing price based on comparable market data.

5 0
3 years ago
During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of
Elanso [62]

(C) Increase liabilities (Accounts payable) by $337.8 million.

<h3>What is inventory?</h3>
  • Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of resale, manufacturing, or use.
  • Inventory management is largely concerned with establishing the shape and positioning of stocked products.
<h3>What is purchasing on credit?</h3>
  • A credit buys, sometimes known as purchasing anything "on credit," is a purchase made today that will be paid for later.
  • When you use a credit card, for example, your financial institution pays for the products or services upfront and then collects the payments from you later.
  • Purchase on credit refers to an increase in liabilities.

Therefore, the correct option is (C) Increase liabilities (Accounts payable) by $337.8 million.

Know more about credit here:

brainly.com/question/26867415

#SPJ4

7 0
2 years ago
Tom buys a shirt for $22.00 plus 7% sales tax. His cousin buys a shirt for $18.00 plus 4% sales tax.How much do Tom and his cous
astra-53 [7]

Answer:

Tom paid $23.54 while his cousin spent $18.72. Tom spent more on tax $.082 more than his cousin.

Explanation:

Tom

Cost of shirt = $22

Sales tax = 7%

Total amount paid = 22 + (7% × 22)

                               = 22 + 1.54

                               = $23.54

Tom's cousin

Cost of shirt = $18

Sales tax = 4%

Total amount paid = 18 + (4% × 18)

                               = 18 + 0.72

                               = $18.72

Tom spent more on tax as he spent $1.54 as against his cousin's $0.72.

3 0
3 years ago
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