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AURORKA [14]
3 years ago
11

You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s

hare. If the​ market's required yield on similar shares is ​percent, should you sell your shares or buy​ more?
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

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Fleming Company has the following cumulative taxable temporary differences: 12/31/18 12/31/17 $1,600,000 $2,250,000 The tax rate
jeyben [28]

Answer:

Pretax financial income is $3,350,000.00

Explanation:

Fleming's pretax financial income is the taxable income for 2018 plus the increase in cumulative taxable temporary difference in 2018.

Taxable income is $4,000,000

Difference in cumulative  taxable difference=$1,600,000-$2,250,000

                                                                        =-$650,000

pretax  financial income=$4,000,000+(-$650,000)

                                                    =$4,000,000-$650,000

                                                    =$ 3,350,000.00  

The pretax financial income for year 2018 is  $3,350,000.00  

7 0
3 years ago
Which situation would allow a country to increase the goods it imports despite spending the same amount of money?
Nataly [62]

A situation that would allow a country to import more goods for the same amount of money is A. The exchange rate for the country's currency increased.

<h3>What happens when exchange rates increase?</h3>

When a nation's exchange rate increases, it means the country's currency is now stronger and can buy more goods.

This means that the country will be able to import more goods for the same amount of money because that amount of money is now more valuable.

Find out more on exchange rates at brainly.com/question/1366402.

#SPJ1

3 0
2 years ago
For many years, college costs (including tuition, fees, and room and board) increases have been higher than the inflation rate,
arsen [322]

Answer: $23,888

Explanation:

The cost today for a freshman at a public university is $19,500.

Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:

= Fees * ( 1 + rate) ^ number of years

= 19,500 * ( 1 + 7%)³

= 19,500 * 1.225043

= $23,888

3 0
3 years ago
You now need to plan for the holiday rush! When the holidays hit, Trader Dan's has a massive increase in customers coming to the
jasenka [17]

Answer: dan needs a faster pace

Explanation:

8 0
2 years ago
To deal with a wartime economic crisis in 1779, Congress urged states to: a. seek loans from friendly European governments. b. a
qwelly [4]

Answer:

C. adopt measures to fix wages and prices.

Explanation:

Between 1775 - 1783, the thirteen (13) colonies in Congress warred against the British because of its lack of colonial representation and the objection of the British to the direct taxation method introduced by the parliament. This war was known as the American revolutionary war or American war of independence.

Consequently, this war resulted in a deep economic crisis and inflation for the people of America.

To deal with this wartime economic crisis in 1779, Congress urged states to adopt measures to fix wages and prices such as refusal to issue continental dollars but resort to the issuing of tax adjustment  notes, loan office certificates, warrants, quartermaster notes, etc.

3 0
3 years ago
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