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
zloy xaker [14]
3 years ago
12

Alpha's preferred stock currently has a market price equal to $80 per share. If the dividend paid on this stock is $6 per share,

what is the required rate of return investors are demanding from Alpha's preferred stock?
a. 7.5%
b. 13.3%
c. 6.0%
d. $6.00
Business
1 answer:
wolverine [178]3 years ago
3 0

Answer:

r = 0.075 or 7.5%

Option a is the correct answer.

Explanation:

The required rate of return is the minimum return that the investors require on a stock based on the risk associated with that stock. To calculate the required rate of return on a preferred stock, we divide the dividend provided by the preferred stock by the market price of the stock.

r = Dividend / Market Price

r = 6 / 80

r = 0.075 or 7.5%

You might be interested in
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
8090 [49]

Answer:

$16,667

Explanation:

Given that

Cash flows = $1,000

Growth rate = 6%

Interest rate = 12%

So by considering the above information, the amount would be

Amount = Cash flows ÷ (Interest rate - growth rate)

= $1,000 ÷ (12% - 6%)

= $16,667

We simply applied the above formula so that the amount could come by considering the given information

3 0
3 years ago
In an organization in which high-level managers make the effort to involve others in decision making and seek opinions of others
NNADVOKAT [17]

Answer:

People or team oriented

Explanation:

The best organization culture is there when there is no comparison between the people who are working at different departments, different levels, etc

The rules, procedures, policies are all not for any single person

Here if the high level managers involves the others in decision making process and seek their opinions for the betterment of an organization that this represents the team oriented as the whole organization is working as a team so the same is to be considered

7 0
3 years ago
The full disclosure principle requires a balance between_______________.
N76 [4]

Answer:

Relevance and cost effectiveness  

Explanation:

Full disclosure principle means that a business should report all the relevant and necessary information regarding their financial statement to the people who are accustomed to reading it as not disclosing full information might affect the readers understanding.

It prevents any lack of information from the business's financial information and helps to ensure that  creditors, stakeholders and investors are aware of all the relevant information while making key decisions that affect the company.

Not disclosing all the information could manipulate the companies financial statement and it may look stronger that it really is.

3 0
3 years ago
the case of _____ has been referred to in the press and business publications as an example of right-minded import protection in
Nastasia [14]

The case of Dole bananas has been referred to in the press and business publications as an example of right-minded import protection in the United States.

<h3>What was the case of Dole bananas?</h3>

Dole Foods used a litigation strategy in US courts to discredit Nicaraguan plantation workers, demonstrating how corporations can use the legal system to avoid providing compensation for human rights violations.

In 2004, a group of Nicaraguan banana plantation workers sued Dole and Dow Chemical Companies for causing them to become sterile as a result of their exposure to a US-banned pesticide (DBCP), which the companies told them to use on Nicaraguan plantations in the 1970s.

Therefore, the Dole bananas case has been referred to in the press and business publications as an example of right-minded import protection in the United States.

To learn more about the Dole bananas case, click here:

brainly.com/question/13415326

#SPJ1

6 0
1 year ago
In today's business environment, companies have to find ways to remain profitable by coping with increased competition and rapid
tigry1 [53]

Answer: broad span of control

Explanation: Reorganizing and eliminating layers of management in order to remain profitable often results in a broad span of control. When layers of management are eliminated, organizations tend to get flatter (a flat organization consists of fewer layers of management), spans of control (which are the areas of activity and number of functions, these managers are responsible for) get wider, and the remaining managers usually empower employees to make more decisions due to wider spans of control.

3 0
3 years ago
Other questions:
  • Wells Company reports the following sales forecast: September, $55,000; October, $66,000; and November, $80,000. All sales are o
    13·1 answer
  • What are basic concepts and principles of morality.
    6·1 answer
  • Which of the following are considered career in government and public administration? Select all that apply.
    13·2 answers
  • What are two ways you would get a good credit report?
    6·1 answer
  • You are trying to determine how much money to save (invest) each year in your 401(k) Plan to fund your retirement in order to pa
    12·1 answer
  • For capital budgeting and cost of capital purposes, the firm should always consider retained earnings as the first source of cap
    10·1 answer
  • Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates:
    5·1 answer
  • Sometimes events on Salesforce need to be handled by an external system due to the scale or type of process being executed. Cons
    14·1 answer
  • There are 8 kinds of sewing machine. Are all of them are used for constructing a garment? Why?
    9·1 answer
  • In managing production worker compensation and expenditures for best practice training, the overriding objective of company mana
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!