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andrew-mc [135]
3 years ago
12

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If thi

s issue currently sells for $80.65 per share, what is the required return?
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

7.56%

Explanation:

Calculation for the required return for Smiling Elephant

Using this formula

Required return =D/P0

Where,

D=$6.10

P0=$80.65

Let plug in the formula

Required return =$6.10/$80.65

Required return =0.0756×100

Required return =7.56%

Therefore the Required return for Smiling Elephant Inc will be 7.56%

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The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually a
myrzilka [38]

Answer: The consumer market segment that is described is the Usage-Rate Segmentation.

Explanation:

This type of consumer market segment is used to determine how much a buyer/consumer uses the product. This put the consumer into a particular category that is used by companies when deciding on their products.

The consumers/customers are put into categories such as the;

  • heavy product users
  • light product users
  • non-users
  • medium product users

Larger companies tend to market towards the heavy product users instead of the other 3 categories.

7 0
3 years ago
Financial Statement Analysis, specifically Ratio Analysis is often performed by managers, investors, and creditors. What is the
IceJOKER [234]

Answer:

The primary goals of managers, investors, and creditors when evaluating ratios are:

1. Managers use ratio analysis to evaluate their performance, understand financial results and trends, and determine the strengths and weaknesses of different strategies and initiatives.

2. Investors perform ratio analysis of the financial statements of companies in order to evaluate the financial health of the companies and estimate likely future performances.  By performing ratio analysis, investors can determine how a company receives financing, uses resources, settles maturing debt obligations, and generate profits.

3. On the part of creditors, they are always interested in knowing if a company is overtrading, uses debt resources efficiently, is credit-worthy, and has the ability to repay.

Explanation:

Ratio analysis reveals important insights about a company's profitability, liquidity, operational efficiency, and overall solvency.  Ratio analysis shows a company's performance in important indices over time.  It can also be used as a tool to compare one company with another, especially if they are in the same industry or economic sector.  Various stakeholders, including managers, creditors, investors, and employees, use ratio analysis to understand the company's value creation ability.

7 0
2 years ago
She negotiated a price of $21,900 and will trade in her old car for $2,350. She will put another $850 with it and borrow the rem
lisabon 2012 [21]

Answer:

The monthly payment will be $434

Explanation:

Price of New car = $21,900

Price of old car exchanged = $2,350

Cash Payment = $850

Amount of Loan = $21,900 - $2,350 - $850

Amount of Loan = A = $18,700

Rate of interest = r = 6% = 0.06 = 0.005 per month

Number of total periods = 12 x 4 = 48

P = $18500 / { [ ( 1 + 0.005 )^48 ] - 1 } / [ 0.005 ( 1 + 0.005)^48 ]

P = $18500 / [ 0.2704891611 / 0.006352446 ]

P = $18500 / 42.58

P = $434.47

6 0
3 years ago
Why is doing timely reconciliations a key part of internal control activities?<br> It ensures that
kati45 [8]

Answer:

It ensures that the Effective internal control reduces the risk of asset loss, and helps ensure that plan information is complete and accurate, financial statements are reliable, and the plan's operations are conducted in accordance with the provisions of applicable laws and regulations. ... Why internal control is important to your plan.

3 0
3 years ago
What are the board directors in charge of
Mama L [17]

Answer:

The board of directors is elected to represent shareholders' interests

Explanation:

Every public company must have a board of directors composed of members from both inside and outside the company. The board makes decisions concerning the hiring and firing of personnel, dividend policies and payouts, and executive compensation. hope this helps you :)

7 0
3 years ago
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