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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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Swifty Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $41000 that will
cluponka [151]

Answer:

depreciation rate per unit $0.34

Explanation:

To calculate the depreciation cost per unit we divide the amount subject to depreciation by the estimated untis production over its useful life:

depreciable amount:

$41,000 - $3,600 = $ 37,400

depreciation rate:

$37,400 / 110,000 units = $0.34

8 0
2 years ago
You are helping a customer who wants to purchase pavers and they have selected
IrinaVladis [17]

Answer:

D. Ask the customer if they need any other products for the project.​

Explanation:

Customers who buy pavers are usually involved in a medium or large house project, and probably need other products. For this reason, a sales representative should ask the customer if they need anything else for the project in order to increase sales for the company.

7 0
3 years ago
Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $
olga_2 [115]

Answer:

Cost of goods manufactured= $87100

Explanation

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.

In this exercise:

<u>Cost of goods manufactured:</u>

Direct materials= $56,000

Direct Labor=$15,600

Factory overhead=Factory supervisor salary+ Depreciation expense+Indirect materials= 10,000 +3,700+1,800= $15,500

Total= $87100

Note: Salesperson commissions and  Depreciation expense Delivery equipment are not included in factory overhead

4 0
2 years ago
Net Games Corporation hires Holley, a minor, to create new customized game software for certain clients. Holley signs a contract
Nuetrik [128]

Answer:

because he was not a big boss voting in his own version and was just about the same questions that he was doing in his first place to help him out

8 0
3 years ago
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Andrej [43]
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

4 0
3 years ago
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