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
natta225 [31]
3 years ago
7

A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred

stock has been estimated to be 16%. The value of the preferred stock is ________. A. $64.B. $16.C. $25.D. $50.
Business
1 answer:
snow_lady [41]3 years ago
4 0

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

You might be interested in
Garcia Company issues 11.5%, 15-year bonds with a par value of $450,000 and semiannual interest payments. On the issue date, the
noname [10]

Answer:

                                  Journal Entry

Date   Account Titles and Explanation         Debit          Credit

Jan 1   Cash                                                    $511,875

                Bond payable                                                  $450,000

                Premium on bond payable                             $61,875

                ($450,000*13.75%)

           (To record issue of bonds at premium)

4 0
3 years ago
Review the various strategies and assemble the strategies on the continuum from left to right in the order of magnitude from lea
sertanlavr [38]

Answer:

Following are the solution to this question:

Explanation:

In part A:

The following were it's less to one of the most foreign enterprises for businesses by using danger, contribution, and command.

  • Licenses
  • Exports
  • Franchises
  • Fabrication of contracts
  • Joint Undertaking/Strategic Arrangement
  • Specific Foreign Profits

In part B:

KFC- franchise

US Bank — Foreign Direct Investment

Soup by Campbell—Joint Venture/Strategic Alignment

Budweiser  Licensing

Exportation of international clients

Cell phone US —Manufacture of contracts

3 0
3 years ago
Select the items that describe how business investments can cause economic growth.
NikAS [45]
Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.
4 0
3 years ago
Compute the payback for each of these two seperate investments:
fredd [130]

Answer:

a. 2.23

b. 3.21

Explanation:

a. Answer to Part A

Payback Period = Investment / Annual Cash Inflow

= 250000 / 112115

= 2.23

Answer to Part B

Payback Period = Investment / Annual Cash Inflow

= 200000 / 62375

= 3.21

Working Note

<em>Particulars                Case A     Case B </em>

After Tax Income  72115         39000

Add: Depreciation  40000       23375

Cash Inflow             11,2115         62375

<em>Particulars              Case A           Case B </em>

Cost of Machine     250000        200000

Less: salvage Value  10000         13000

Depreciable Value   240000        187000

Life of the Asset           6                  8

Annual Depreciation 40000         23375

8 0
3 years ago
Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. Wha
gtnhenbr [62]

Answer:

The expected price after 1 year would be$55.5

Explanation:

According to the given data,

Price of the stock (Po) = $50

Dividend after 1year (D1) = $2

Equity cost of capital (KE) =15%

The formula for calculating the price after 1 year i.e.,(P1 ) is

                         

                          Po = (D1 + P1 )/ 1+KE                                      $50= ($2 + P1) / (1+0.15)

                        P1 = [$50(1.15)] - $2 = $55.5

6 0
3 years ago
Other questions:
  • Marcus owns common stock in XO, an oil and energy company that is about to be liquidated. Is Marcus guaranteed to be paid in the
    14·1 answer
  • Piedmont Hotels is an all-equity company. Its stock has a beta of .94. The market risk premium is 7.5 percent and the risk-free
    12·1 answer
  • Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. The company purchased office supplies for
    15·1 answer
  • The statement reflecting changes in permanently restricted, temporarily restricted and unrestricted net assets for a private sec
    13·1 answer
  • Benefit payments made on a ____________ basis are not scheduled, but are based on the average fee charged by all doctors in a gi
    13·1 answer
  • Department A had no Work-in-Process at the beginning of the period, 1,000 units were completed during the period, 200 units were
    13·1 answer
  • Under process model, organizational effectiveness is portrayed by having internal conflict where information flows easily both h
    11·1 answer
  • If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:_______
    10·1 answer
  • What is bancassurance?
    11·1 answer
  • Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!