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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

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Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $
Anna [14]

Answer:

A) 32,090 cookies

B) $ 0.5665336

C)   32.938%

<em>Questions:</em>

A) If Erin sells her cookies for $1.72 each, how many cookies did she sell during the month?

B) Contribution margin per cookie

C) Contribution margin ratio

Explanation:

A) sales revenue / sale price per unit

55,194 / 1.72 = 32.089,53

B) and C)

variable cost:

manufacturing                        28,232

selling 8,908 x 20% =                1.781,6‬

administrative 11,516 x 60% =<u> 6.909,6‬  </u>

   Total variable cost:             37.014,2‬

Contribution Margin: 55,194 - 37,014.2 = 18.179,8‬

Contribution Margin Ratio 18,179.8 / 55,194 = 0,329380 = 32.938%

Contribution Margin per cookie:

$1.72 x 32.938% = 0,5665336

5 0
2 years ago
Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:
joja [24]

Answer & Explanation:

Account                 Type of Account         Increase side  

Supplies                     Asset                        Debit

Retained Earnings    Capital                      Credit

Fees Earned             Revenue                    Credit

Accounts Payable     Liability                      Credit

Salary                          Expense                   Debit

Common Stock           Asset                        Debit

Account Receivable     Asset                        Debit

Equipment                    Asset                       Debit

Notes Payable              Liability                    Credit  

8 0
2 years ago
TB MC Qu. 1-150 Haack Inc. is a merchandising company ... Haack Inc. is a merchandising company. Last month the company's cost o
Sever21 [200]

Answer:

$87,200

Explanation:

The computation of the total amount of merchandise purchase is shown below:

As we know that

Cost of goods sold = Beginning merchandise inventory + purchase of merchandise - ending merchandise inventory

$69,400 = $11,600 +  purchase of merchandise - $29,400

$69,400 = -$17,800 + purchase of merchandise

So, purchase value of merchandise is

= $69,400 + $17,800

= $87,200

5 0
3 years ago
Echo Sound Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 2
blsea [12.9K]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

June 1: $780/150 units= $5.2 per unit

June 10: $1,170/200 units= $5.85 per unit

June 15: $1,260/200= $6.3 per unit

June 28: $990/150= $6.6 per units

A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.

Units sold= total units - ending inventory

Units sold= (150 + 200 + 200 + 150) - 210= 490 units

<u>The method with the lowest cost of goods sold will have the highest income:</u>

FIFO (first-in, first-out):

COGS= 150*5.2 + 200*5.85 + 140*6.3= $2,832

LIFO /last-in, first-out)

COGS= 150*6.6 + 200*6.3 + 140*5.85= $3,069

Weighted-average:

Weighted-average price= (5.2 + 5.85 + 6.3 + 6.6)/4= 5.99

COGS= 490*5.99= $2,935.1

The inventory method that will provide the highest gross profit is FIFO.

4 0
3 years ago
The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred n
gizmo_the_mogwai [7]
Blockbuster is your answer
3 0
3 years ago
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