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
Sergio [31]
3 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]3 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

You might be interested in
As Quentin checks out of a hotel, he recalls the expectations of quality and service he had upon arriving at the hotel and reali
Soloha48 [4]

Answer:

Experiential

Explanation:

Experiential is the term which is defined as something experiential and it comes from the real world or from experience. It is the procedure of learning through a experience, which is particularly stated as learning by reflection on doing.

So, in this case, the Quentin checks into a hotel, where on arriving he realizes that grounded on expectations, he is not thrilled with the experience. Therefore, this kind of purchase is defined as experiential.

3 0
4 years ago
The table below represents the output of Poems and TV Commercials per day by two​ authors: Krystal or​ Mark:
k0ka [10]

Answer:

C. Mark has a comparative advantage in writing TV commercials and Krystal has a comparative advantage in writing poems.

Explanation:

Mark has absolute advantage in both as it can outproduce Krystal in both, ppoems and TB commercials

now, referring to comparative advantage:

Mark opportunity cost for TV comm: 12/4 = 3

Krystal opportunity cost for TV comm: 8/2 = 4

It has comparative advantage doing TV comm as it renounce to less poems

Mark opportunity cost for poems: 4/12 = 1/3

Krystal opportunity cost for poems: 2/8 = 1/4

Krystal has a comparative advantajge as it renounce to a quarter of TB commercial per poem while Mark to a third

3 0
3 years ago
Medicare covers the cost of care in what countries besides the united states
grin007 [14]

Medicare coverage outside the United States is limited. mostly, Medicare won’t pay for health care or supplies you get outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S., Guam, American Samoa, and the Northern Mariana Islands, Virgin Islands.

3 0
3 years ago
A computer assembly firm purchases computer parts at $230 per computer. The
zysi [14]

Answer:

Maybe 60%

Explanation:

8 0
3 years ago
Which of the following would most likely use a job order costing system? a.oil refinery b.company that manufactures chlorine for
mamaluj [8]

Answer:

d swimming pool installer

Explanation:

7 0
3 years ago
Other questions:
  • Which consumer electronics manufacturer also produced tires? nokia sharp phillips grundig
    7·1 answer
  • Which of the following makes decisions about interest rates and the growth of the money supply? A. Federal Advisory Council B. F
    9·1 answer
  • Explain the risks associated with leveling resources, compressing or crashing projects, and imposed durations or "catch-up" as t
    7·1 answer
  • The management of Computer Rescues, Inc. finalized the company's action plan for increasing its market share over the next few y
    8·1 answer
  • Roy Rogers is the accounting manager at Tire, Inc., a tire manufacturer. He plays golf with the CEO, who is somewhat of a celebr
    13·1 answer
  • Dennis purchased a big-screen television from ABC Electronics and financed the purchase through ABC Electronics based on an agre
    14·1 answer
  • According to the two-factor theory, ________. A) there exists a hierarchy of needs within every human being, and as each need is
    5·1 answer
  • What economic event began in 2007?
    13·1 answer
  • Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his ta
    15·1 answer
  • One of the reasons why the discounted cash flow method of valuation is useful in assessing the value of fixed income instruments
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!