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Free_Kalibri [48]
3 years ago
14

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

vidend will not be paid until 20 years from today. If you require a return of 9.75 percent on this stock, how much should you pay today
Business
1 answer:
Sever21 [200]3 years ago
5 0

Answer:

You would pay approximately $35.00 today

Explanation:

The cost of the stock at the beginning of the year 20

= 20/9.75%

= 20/0.0975

= 205.13 dollars

We find the current price of the stock

= Fv/(1+r)^n

= 205.13/(1+9.75%)¹⁹

= 205.13/1.0975¹⁹

= 205.13/5.86

= $35.00

From this calculation you have to pay 35 Dollars today.

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The concept of demand is best described as the quantity of a good or a service that people will offer for sale at different poss
Igoryamba

Answer:

the quantity of a good or a service that people are willing and able to purchase at different possible prices.

Explanation:

The demand concept would be refer to the various quantity amount in which the people are willing and able to buy at various prices so the demand concept deals with the goods or service quantity in which the purchaser would purchase at various prices that can be possible

Hence, the above represent the answer

7 0
3 years ago
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information i
viva [34]

Answer:

(A) $120,000.

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES  $

Net Income     52,000

<em>Adjustments to reconcile net income to      </em>

<em>net cash provided by operating activities:      </em>

Depreciation on Fixed Assets    20,000  

<em>(Increase) Decrease in Current Assets:      </em>

Accounts Receivables    25,000

Inventory      5,000

<em>Increase (Decrease) in Current Liabilities:</em>    

Accounts Payable     18,000

NET CASH PROVIDED BY OPERATING ACTIVITIES 120,000

8 0
3 years ago
Deana was asked to provide information to support her friend, Toby who was denied a reasonable accommodation based on a disabili
Elan Coil [88]

Answer: D. Toby was ultimately found to be disabled under the ADA, and entitled to reasonable accommodation

Explanation:

The options are

A.she testified on behalf of Toby

B) the employer retaliation (her demotion) was related to her testimony on Toby's behalf

C) Toby was ultimately found to be disabled under the ADA, and entitled to reasonable accommodation

D) she was demoted

Deana must be able to show all of the above except for

Toby was ultimately found to be disabled under the ADA, and entitled to reasonable accommodation.

6 0
4 years ago
Read 2 more answers
You find an apartment that rents for $320 per month. You are also responsible for ulities that average $80 per month. What is yo
arsen [322]

For this question, you need to find out some basic information. We know that 12 months is a total of a year. First, add up the rent, plus the utilities.

320 + 80 = 400

Then, you will multiply the 400 by 12.

400 x 12 = 4,800

The likely yearly cost for this apartment would be 4,800.

:)

5 0
3 years ago
Read 2 more answers
Midland Utilities has outstanding a bond issue that will mature to its $1,000 par value in 11 years. The bond has a coupon inter
MArishka [77]

Answer:

at 13% --> $1,000

at 17%  -->$806.54

at 10%  --> $1,194.85

When the rates do not match people will only accept the bond if their desired market return can be acheive. Because, the coupon payment are fixed the only way to do so is by changing the price ofthe bond.

So bond with coupon rate above market are trade at a price higher than face value while, below market traded at lower price.

Explanation:

The market value of a bond is the present value of the future coupon payment and maturity given the current market rate

When the market rate matches the coupon rate then the bond is at par and sales at face value.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 130.000

time 11

rate 0.17

130 \times \frac{1-(1+0.17)^{-11} }{0.17} = PV\\

PV $628.7337

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   11.00

rate  0.17

\frac{1000}{(1 + 0.17)^{11} } = PV  

PV   177.81

PV c $628.7337

PV m  $177.8097

Total $806.5435

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 130.000

time 11

rate 0.1

130 \times \frac{1-(1+0.1)^{-11} }{0.1} = PV\\

PV $844.3579

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   11.00

rate  0.1

\frac{1000}{(1 + 0.1)^{11} } = PV  

PV   350.49

PV c $844.3579

PV m  $350.4939

Total $1,194.8518

3 0
4 years ago
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