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Flauer [41]
2 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]2 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 ($)

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Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. B
Elanso [62]

Answer:

e.

Explanation:

it's imperative to move first in markets influenced by network effects.

Because, the ability to reach larger numbers of people depend on the effect of network coverage.

6 0
3 years ago
Irrespective of whether a firm produces or shuts down in the short run, fixed cost is equal to its _____
Otrada [13]

Answer:

c. sunk cost.

Explanation:

Because in short run, fixed cost doesn't changes with output, that is whether we produce or not, we have to pay for it, so it is considered as Sunk cost. Also like Sunk cost, we don't make decisions with fixed costs.

4 0
3 years ago
What is a warranty?
Delvig [45]

Answer:

D

Explanation:

A warranty is a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.

7 0
3 years ago
Read 2 more answers
In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12
IceJOKER [234]

Answer:

The correct answer is:

(1) $15,054

(2) $12,990

Explanation:

The required table is not given in the question. Please find below the attachment of the table.

Given:

Future value,

= $30,000

If discounting rate is 9%, the present value will be:

= Future \ value\times PV \ factor(9 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.09} )^8

= 30000\times 0.5018

= 15,054 ($)

If discounting rate is 11%, the present value will be:

= Future \ value\times PV \ factor(11 \ percent, 8 \ years)

= 30000\times (\frac{1}{1.11} )^6

= 30000\times 0.433

= 12,990 ($)

8 0
3 years ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

                          = 0.7953 x 100

                          = 79.53%

The rate of return of the acre of land is 79.5%.

7 0
2 years ago
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