Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The required rate of return on its preferred stock is found by using PW = D/R.
<u>Given Information</u>
Dividend per year = $2
Stock price = $20
Tax rate = 21%
Required rate of return (R) = ?
- The formula for use to derive the Required rate of return includes PV = D/R, where PW means Present worth, D = Dividend per year and R means Required rate of return.
PV = D/R
$20 = $2 / R
$20 * R = $2
R = $2 / $20
R = 0.1
R = 10%
Therefore,, the required rate of return on the preferred stock is 10%.
In conclusion, the required rate of return on its preferred stock is found by using PW = D/R.
See similar solution here
<em>brainly.com/question/17322679</em>
Answer:
BenchMark, Inc.
The current share price for the stock is:
$43.13
Explanation:
Dividend per share = $3.45
Growth rate = 5%
Investors' required rate of return = 13%
Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)
= $3.45/(0.13 - 0.05)
= $43.13
b) To determine BenchMark, Inc.'s current share price divide the dividend per share by the required rate of return after subtracting the growth rate from the required rate of return.
Answer:
higher taxes
Explanation:
if we raise minimum wage the tax scale will also raise. our income bases off how much we pay in taxes. meaning more money, more taxes.
Answer:
D) Shift of the demand curve for Z to the left
Since both the equilibrium quantity and price decreased.
Explanation:
A rightward shift of the demand curve should increase both the equilibrium price and quantity.
A rightward shift of the supply curve should increase the equilibrium quantity and decrease the equilibrium price.
A leftward shift of the supply curve should increase the equilibrium price and decrease the equilibrium quantity.
