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Galina-37 [17]
3 years ago
7

Timeless Corporation issued preferred stock with a par value of $600. The stock promised to pay an annual dividend equal to 20.0

% of the par value. If the appropriate discount rate for this stock is 13.0%, what is the value of the stock
Business
1 answer:
AnnZ [28]3 years ago
4 0

Answer:

$923.08

Explanation:

Calculation to determine the value of stock

Annual Dividend = 20%*600 = D = 120

Discount rate = r = 13% = 0.13

Value of the preferred stock can be calculated using the perpetuity formula:

Value of the dividend = P = D/r = 120/0.13 = $923.08

Therefore the value of stock is $923.08

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Answer:

Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000

Explanation:

look p1 a machine

6 0
3 years ago
The chief distinguishing factor of a corporation is its 1.________ . An investor who purchases stock in a corporation becomes a
elena-14-01-66 [18.8K]

Answer:

1. Limited liability

2. Shareholder

The concept of limited liability is one of the main characteristics of a corporation. Limited liability means that the owners are responsible for the debts of the company only to the extent of the money they've contributed to the company.

When an investor purchases shares of a corporation, becomes a shareholder of a corporation.  He can then benefit from the growth in the company since he is also the owner of the company.

6 0
3 years ago
Suppose the Federal Reserve increases the amount of reserves by $100 million and the total money supply increases by $500 millio
dimulka [17.4K]

Answer:

a.  The money multiplier is 5.

b. The Total money supply will increase by $250 million.

Explanation:

According to the given data we have the following:

Increase in amount of reserves by Fed = $100 million

Increase in money supply = $500 million

Therefore to Calculate the Money multiplier we have to use the following equation:

Increase in money supply = Increase in reserves×Money multiplier

So, Money multiplier = Increase in money supply/Increase in reserves

                                  = $500 million/$100 million

                                 = 5

a.  The money multiplier is 5.

If there is anIncrease in amount of reserves by Fed = $50 million  and the Money multiplier = 5 , therefore to Calculate increase in money supply we calculate the following:

Increase in money supply = Increase in amount of reserves by Fed * Money multiplier

                                            = $50 million  

                                           = $250 million

b. The Total money supply will increase by $250 million.

7 0
4 years ago
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The given option is incorrect

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Explanation:

It is one of the most important points for your viewers as part of online gaming marketing strategies. Continue posting all your game related things to increase your product thirst. gamer. The higher the number of shares, the higher the chat, all around.

This is another important component of their marketing strategy for online gaming.

Prepare a list of contacts to help them with their game's press release.

As part of their online gaming marketing strategy, it is important that they develop their own website. It will help connect all of their social media accounts to one location and provide an opportunity to track their followers for regular updates.

6 0
4 years ago
What is a multinational company
Dahasolnce [82]
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