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Sergio [31]
2 years ago
12

E-Eyes Bank just issued some new preferred stock. The issue will pay a $9 annual dividend in perpetuity, beginning 6 years from

now. If the market requires a 6 percent return on this investment, how much does a share of preferred stock cost today
Business
1 answer:
goldenfox [79]2 years ago
6 0

Answer:

Explanation:

Calculation to determine future sales discounts

Using this formula

Value of Preferred Stock in year 5 =Annual Dividend/Required Rate

Let Plug in the formula

Value of Preferred Stock today =(6/6%)/(1+6%)^5

Value of Preferred Stock today =100/(1+6%)^5

=124.58

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Nutrimax Corp., a breakfast cereal company, has designed extensive and elaborate advertising campaigns for its existing products
Schach [20]

Answer:

b. Market penetration

Explanation:

As Nutrimax Corp has designed extensive and elaborate advertising campaigns for its existing products. The campaign mainly focuses on the features and benefits of the products that differentiate the cereals from the competition. Nutrimax Corp. is using market penetration strategy. In market penetration strategy, firm wants to increase and expand its business and sales by focusing on the existing market with the help of existing products and services as it has been done by Nutrimax Corp in this case. Firm targets the same customers with the same products and services but with better and enhanced advertisement, product features, offers, discounts and schemes.

3 0
3 years ago
The time value of money refers to the issue of:
uysha [10]

Answer:

D. what the value of the stream of future cash flows is today

Explanation:

The times' value of money derives that today value or we can say the present value is more than the value earned at the future or future value because of the earning capacity due to inflation. As inflation rises, consumer spending become less as compare to before

Just take an example

If you invest $1,000 today that earns the interest rate at 10% for one year

So, the present value = $1,000

And, the future value = $1,000 × 1.1 = $1,100

So, today value is becoming more worth than the future value  

The formula to compute the future value is shown below:

Future value = Present value × (1 + interest rate)^number of years

Note: The yoda is actually today. It is given wrong

7 0
3 years ago
Mustaine Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places sm
polet [3.4K]

Answer:

(A) $625 per order

Explanation:

Processing a sales order shall be based on the number of orders processed.

As the total orders processed are:

JIT = 300

Non JIT = 20

Therefore, total orders = 320

Total cost to be allocated = $200,000 that is the order processing cost of previous quarter.

Cost per order shall be \frac{200,000}{320}

= $625 per order.

Note: The order size do not matter.

Therefore, correct option is:

(A) $625 per order

6 0
2 years ago
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $20 per share. Later in the year, the compa
agasfer [191]

Answer:

Dr. Cash                                           $2,500

Cr. Treasury Shares                        $2,300

Cr. Paid-In-Capital Treasury Stock $200

Explanation:

Treasury stock is the share of the company issued earlier and bought-back. It can be reissued and cancelled by the company.

At the time of repurchase

Treasury Shares = 100 x $23 = $2,300

Dr. Treasury Stock $2,300

Cr. Cash                  $2,300

At the time of Resale

All the difference in the issuance of treasury stock will be transferred to Paid-In-Capital Treasury Stock account.

Proceeds = 100 x $25 = $93,600

Paid-In-Capital Treasury Stock = $2,500 - $2,300 = $200

6 0
3 years ago
_______ believed that quality stemmed from "constancy of purpose," and that managers should stress teamwork, be helpful rather t
gayaneshka [121]

Answer:

Group of choices:

A- Max Weber

B- Mary Parker Follett

C-W. Edwards Deming

The correct answer is C-W. Edwards Deming.

Explanation:

William Edwards Deming (1900-1993) was a statistician, university professor, author of texts, consultant and disseminator of the concept of total quality. His works introduced the new management principles into the Japanese industry, and revolutionized their quality and productivity.

During World War II, Deming taught American technicians and engineers statistics that could improve the quality of war materials. But his work was ignored.

He went to Japan in 1950, when his industry and economy was in crisis. He taught Japanese administrators, engineers, and scientists how to produce quality products and services. They listened and applied their principles. They changed their way of thinking, their management style and their relationship with employees. By following Deming's philosophy, the Japanese turned their economy and productivity completely to become the world market leaders.

Thirty years later, Americans seeing how Japan became an industrial power in a short time, sought Deming's advice. Back in the United States in 1980, Deming starred in a NBC-broadcast show titled "If Japan Can ... Why Can't We?" Thus, the demand for its services grew dramatically.

5 0
3 years ago
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