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Tanzania [10]
3 years ago
14

Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.10 per share. If the required

return on this preferred stock is 6.5%, at what price should the preferred stock sell
Business
1 answer:
DerKrebs [107]3 years ago
4 0

Answer:

PV = $78.46153 rounded off to $78.46

Explanation:

A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,

PV = Cash flow / r

Where,

  • r is the required rate of return

PV = 5.1 / 0.065

PV = $78.46153 rounded off to $78.46

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Operating cash flow is defined as:A. a firm's net profit over a specified period of time.B. the cash that a firm generates from
mina [271]

Answer:

B. the cash that a firm generates from its normal business activities using its existing assets

Explanation:

It represent the cash from the main activity. It is a good indicator wether the company needs external financing or it can sustain his grow with own funds.

It is stated in the cash flow statement. along with investing and financing activities.

3 0
4 years ago
Pam and Marian have formed a limited partnership in the state of Massachusetts. Their business does well, and as it continues to
Serga [27]

If Pam and Marian are successful in their application to New Hempshire and Connecticut, they will get a Certificate of Registration.

<h3>What is a certificate of registration?</h3>

This is a legal document that is issued by the government of an area to show that a company can operate in the area because they have met the necessary requirements.

If Pam and Marian are cleared by the Connecticut and New Hampshire states, they will get Certificates of Registration.

Find out more on Registering a business at brainly.com/question/26101756.

#SPJ12

8 0
2 years ago
The marketing concept states that the social and economic justification for an organization’s existence is the satisfaction of c
Goshia [24]

Answer:

True

Explanation:

The satisfaction of customer is the key need of survival for any business.

As the customer satisfaction will result into good branding, economic support and vital performance booster for the organisation.

Customer satisfaction ensures that the organization is socially and economically viable, and equally capable of running business with the perspective of growth.

Thus the above stated statement is

True

7 0
3 years ago
Leondra looks over her Algebra homework and says to herself ""I’m probably not going to be able to do this - I’m just not a math
sveticcg [70]

Answer:

Fixed mindset

Explanation:

Mindset could be explained as an individual's psychological state which often transcends into how we perceive challenges, what we can do and what we can't. Usually the ability to solve a puzzle, face and conquer a challenge starts and ends with an individual's mindset as it is where either the strength to execute or depression to walkway is derived.

The growth mindset gives individuals who exhibit the trait the strength and morale to face challenges, instead of backing out without trying, they try to find ways of constantly improving at what seems difficult.

On the other hand, the fixed mindset which is what is exhibited by Leandro could be deemed as a rigid type of notion whereby an individual believes all he knows and all he can do are already fixed, hence anything aside those cannot be successfully executed this kind of individuals fail to try new challenges.

7 0
3 years ago
The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: Mu
liubo4ka [24]

Answer:

E. Over applied overhead

Explanation:

Over applied overhead is defined as excess amount of overhead applied during a production period over the actual overhead incurred during that period. In other words, it means excess overhead applied to work over the amount of overhead actually incurred.

When this occurs, it is called favourable variance and it is added to the budgeted profit in the end of the accounting period in a financial statement.

5 0
3 years ago
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