1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enot [183]
2 years ago
8

Your firm has preferred stock outstanding that pays a current dividend of $3.00 per year and has a current price of $39.50. You

anticipate that the economy will grow steadily at a rate of 3.00% per year for the foreseeable future. What is the market required rate of return on your firm's preferred stock?
Business
1 answer:
aksik [14]2 years ago
7 0

Answer:

7.59%

Explanation:

the dividend is a perpetuality, so the formula for determining the price is :

Price = dividend / required rate of return

$39.50 = $3 / required rate of return

required rate of return = $3 / $39.50 = 0.0759 = 7.59%

You might be interested in
A machine costs $1,000 and has a 3-year life. the estimated salvage value at the end of three years is $100. the project is expe
AnnyKZ [126]
Cost of machine = $1,000

NPV of revenues = p( \frac{1- (1+RoR)^{-n} }{RoR} ) = 600( \frac{1- (1+0.1)^{-3} }{0.1} ) = $1,492.11

NPV of salvage value = FV ( \frac{1}{ (1+RoR)^{n} } )= 100( \frac{1}{ (1+0.1)^{3} } ) = $75.13

Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567
5 0
3 years ago
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your ans
puteri [66]

Answer:

Make $200,000 in less than two month (Send me a message if interested)

If I told you that you could turn your spare time into a side-income online business, would you be interested?    

I recently became introduced to two guys that were able to make $960,824.41 within 31 days. These guys are “anti-gurus”... they’re everyday guys. Their students have generated millions, too.   And they also helped me to make over $200,000 in less than 2 months

I was able to convince them to show you how they did it on a free training event this week.

They’re sharing this for the first time and will show you how to turn your spare time into a $100,000.00 online side business.  

The best part? You can do this with NO experience / technical skills.

Explanation:

3 0
3 years ago
Brian just started using a budget. He proudly tells friends that his budget helps him know where his money is being spent. It al
stepan [7]
The right answer for the question that is being asked and shown above is that: "<span>Brian has some understanding of budgeting. However, a budget does not create more money each month. It just helps him use his money better." That is the best answer among the choices.</span>
5 0
3 years ago
When a hurricane rips through Florida, the price of oranges rises because the demand curve shifts to the left. supply curve shif
maw [93]

Answer:

Supply curve shifts to the left.

Explanation:

It is know that Florida is the biggest orange producer in America, when a hurricane rips through Florida, there is no change in demand, so the demand curve remains unaltered. As  for the supply curve, the hurricane is likely to destroy orange crops causing a shortage in supply which corresponds to a shift to the left by the supply curve.

The answer is: supply curve shifts to the left.

7 0
3 years ago
You plan to retire at age​ 65, and you want to have enough money in your savings account to withdraw​ $54,000 every year for 20
leonid [27]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
Other questions:
  • Since your first​ birthday, your grandparents have been depositing $ 120 into a savings account every month. The account pays 6​
    6·1 answer
  • g The long-run effect of an increase in household consumption is to raise a. both real output and the price level. b. real outpu
    8·1 answer
  • Your car still has a marginal cost of $20,000. But, the market price has now increased to $25,000. Your incentive to supply cars
    11·2 answers
  • Henry, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the
    13·1 answer
  • In an econometric model, the dependent variable is Group of answer choices unrelated to the independent variables. the behavior
    12·1 answer
  • What is a promotional activity for a film? A.constructing a huge set
    8·1 answer
  • It has been said that Earned Value Management (EVM) came about because the Federal Government often used "Cost-plus" contractors
    9·1 answer
  • Dorsett Corporation's income tax return for Year 8 shows deductions exceeding gross income by $56,800. Included in the tax retur
    10·1 answer
  • ____1. The process of coordinating and overseeing the work performance of individuals working together in organizations, so that
    7·1 answer
  • the builders of the transcontinental railroad used legal and illegal means to cut costs and finance construction. which phrases
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!