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
Flauer [41]
3 years ago
14

If a preferred stock from Pfizer Inc. (PFE) pays $4.00 in annual dividends, and the required return on the preferred stock is 8.

00 percent, what's the value of the stock?
a. $50.00
b. $0.32
c. $32.00
d. $0.50
Business
1 answer:
Jlenok [28]3 years ago
5 0

Answer:

Option a ($50.00) seems to be the right approach.

Explanation:

The given values are:

Annual dividend is,

= $4.00

Required return is,

= 8.00% i.e., 0.08

By using the formula, we get

⇒ Value \ of \ the \ stock=\frac{Annula \ Dividend}{Required \ return}

On putting the above given values, we get

⇒                              =\frac{4.00}{0.08 }

⇒                              =50 ($)

You might be interested in
Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Go
Aleksandr [31]

Answer:c. Both Copper Corporation and Gold Corporation.

Explanation:Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

Generally, a small business can use either the overall cash method of accounting or an overall accrual method of accounting. ... The overall cash method of accounting is available for S corporations, partnerships that do not have a C corporation as a partner, and personal service corporations (PSCs).

4 0
3 years ago
Read 2 more answers
A worker in which career pathway might need to memorize lines
Vladimir79 [104]
Entertainment; actors, singers, etc.
6 0
3 years ago
Which of the following theories argues that organizations try to minimize their reliance on other organizations for the supply o
aleksklad [387]

Answer: The answer is C.

Explanation: The Resource dependence theory is based on the principle that organizations, must engage in transactions with other organizations in their environment in order to acquire the resources needed for their daily operations.

Although such transactions may be advantageous, they may also create dependencies that are not, and so organization A may want to rely less on organization B, in their quest to influence the environment to make resources available.

This theory actually originated in the 1970s with the publication of The External Control of Organizations: A Resource Dependence Perspective by Jeffrey Pfeffer and Gerald R. Salancik.

The theory is based on the idea that resources are vital for organisational success and that access and control over resources forms the basis of power.

4 0
3 years ago
Read 2 more answers
Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per ye
HACTEHA [7]

Answer:

the opportunity cost of the land purchase is $34,050

Explanation:

The computation of the opportunity cost of the land purchase is shown below;

= Cash outlay × return percentage

= $227,000 × 15%

= $34,050

Hence the opportunity cost of the land purchase is $34,050

We simply multiplied the cash outlay with the return percentage so the same would be calculated

6 0
3 years ago
LIFO uses the ______ unit costs for Cost of Goods Sold on the income statement and the ______ unit costs for Inventory on the ba
Tasya [4]

LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.

<h3>What is LIFO?</h3>

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).

To learn more about LIFO, please check: brainly.com/question/13779572

3 0
2 years ago
Other questions:
  • An interest group's primary responsibility is to
    5·1 answer
  • 4.
    10·1 answer
  • Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the f
    5·1 answer
  • Government forms created by the Federal Reserve must be approved by the Office of the Comptroller of the Currency
    14·2 answers
  • For the following questions, you need to determine whether each of the four factors given creates a positive demand shock, a neg
    11·1 answer
  • Athena Company provides employee health insurance that costs $14,200 per month. In addition, the company contributes an amount e
    9·1 answer
  • You want to have $400,000 to purchase a house 10 years from today. Assuming you can earn 3 percent, compounded annually, how muc
    15·1 answer
  • PLEASE ANSWER THESE IT WOULD BE A HUGE HELP
    15·1 answer
  • a newspaper reports that in urban area the average price of new homes had decreased, but the number sold had increased. The sita
    14·1 answer
  • What is term for the ability to easily turn assets or investments into cash?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!