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Free_Kalibri [48]
2 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]2 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.

You might be interested in
Scenario C. Parker Brothers is a high-end furniture manufacturer located in the Midwest, Mr. Herbert "Bud" Parker started the fi
Reika [66]

The correct answer is A) organization culture.

The other options of the question were B) the company's macroenvironment. C) the organization's competitive environment. D) collective competitive intelligence. E) organizational structure.

The stories about the "Parker Legends" and the organization's most innovative designs are all clues to understanding the organization's culture.

This is the importance of the culture of a company. The series of values, principles, mission, and vision that characterizes and makes the company unique. Every single employee in the company shares these values and can be transmitted through time to new workers. "Parker Legends" is a tradition that is respected and is part of the organization's DNA.

5 0
3 years ago
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade pr
Ludmilka [50]

Answer:

$0.10 is the correct answer.

Explanation:

8 0
2 years ago
The High Towers Center is a 300-room hotel that was built ten years ago for a total project cost of $24,000,000. The market valu
bagirrra123 [75]

Answer:

$80

Explanation:

The computation of the price of a room night is given below:-

Investment made = $24,000,000

Return required at $1 per 1,000 = $24,000

Number of rooms = 300

Price of Room rent =  Return ÷ Number of rooms

= $24,000 ÷ 300

= $80

Therefore for computing the room price of room rent we simply divide the number of rooms by return required.

7 0
3 years ago
This year Army purchased $3,700 of equipment for use in her business. However, the machine was damaged in a traffic accident whi
Andreas93 [3]

Answer: Check explanation

Explanation:

a. Since Amy bought the equipment for $3700 and sold the equipment for $690, the amount that Amy can deduct for the loss of the equipment will be:

= $3700 - $690

= $3010

b. Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $1370.

Therefore, $1370 will be deducted.

c. After the accident, Army could not replace the equipment so she had the equipment repaired for $4,300. What amount can Army deduct for the loss of the equipment?

Here, the amount that Army can deduct for the loss of equipment will be the lesser of the amount Amy bought the equipment which is $3700 or the cost of the repair which is $4300.

Therefore, $4300 will be deducted.

4 0
3 years ago
When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. Whe
Airida [17]

Answer:

Global strategy; Transnational strategy

Explanations:

Companies should choose a global strategy or transnational strategy

A global strategy is a technique used by a firm to expand and compete in the global market. It is the plans made by a firm to grow beyond it's border.

Global strategy covers three other strategies

1. International strategy

2. Multinational strategy

3. Global strategy

A firm adopt global strategy in order to increase its sales of products and Profit.

Transnational strategy is a technique which allows firms to expand sales of goods and services while taking into consideration the difference in culture of people.

Transnational occurs when a company in China wants to expand to other countries like Nigeria. For China to have a smooth operation, it must first take into cognizance our culture and believe.

6 0
3 years ago
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