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HACTEHA [7]
3 years ago
11

molen inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.00 per share. if the required ret

urn on this preferred stock is 6.5%, then at what price should the stock sell?
Business
1 answer:
crimeas [40]3 years ago
7 0

The price at which the stock should sell is $61.54.

Using this formula

Stock selling price=Preferred stock annual dividend/Preferred stock required return

Where:

Preferred stock annual dividend=$4.00 per share

Preferred stock required return=6.5% or  0.065

Let plug in the formula

Stock selling price=$4.00/0.065

Stock selling price=$61.538

Stock selling price=$61.54 (Approximately)

Inconclusion the price at which the stock should sell is $61.54.

Learn more here:

brainly.com/question/15561609

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Raul is a financial analyst who oversees the daily financial expenditures for a major big box retailer. on a typical day, raul d
musickatia [10]

To enhance Raul’s well being at work, his manager should arrange Raul’s schedule in means of reducing the time of his work that will have enough time for him to balance home and work and in a way of maintaining his well being at work and his child at home.

7 0
3 years ago
If a firm in a monopolistically competitive market lowers price, then Use letters in alphabetical order to select options
Valentin [98]

Answer: quantity demanded for the good will increase (D)

Explanation:

Monopolistic competition is an imperfect competition where there are many producers that sell products that are differentiated from each another e.g through quality or branding.

In a monopolistic competitive market, firms maximizes profits when marginal revenue equals to the marginal cost. The demand curve of a monopolistic competitive market is downward sloping which means that as price reduces, the quantity demanded for the good will increase.

3 0
2 years ago
Read 2 more answers
he nation of Pecunia had a current account deficit of ​$ billion and a nonreserve financial account surplus of ​$ million in 201
Andrei [34K]

Answer: -$500,000,000

Explanation:

The Balance of payment is an account that shows the difference between the money coming into a country as a result of transactions with other nations and money going out for the same reason.

Given the figures in the question, the Balance of Payments is;

= Current Account balance + Nonreserve financial account balance

= -1,000,000,000 + 500,000,000

= -$500,000,000

4 0
3 years ago
Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for
Rama09 [41]

Answer:

5 units

Explanation:

Breakeven point is the point or number of units sold that makes the cost equal with the revenue generated. In other words, it is the point in which the profit or loss made by an entity is 0.

Given;

Variable cost per unit = $20

Selling price per unit = $50

Fixed cost =  cost of rent = $150

Let the number of units to be sold be c

Total revenue = 50c

total cost = 20c + 150

To break even, total revenue =  total cost

20c + 150 = 50c

50c - 20c = 150

30c = 150

c = 5

Ray must sell 5 units to break even.

5 0
2 years ago
Sandy Shores Corporation operates two stores: J and K. The following information relates to J: Sales revenue$1,300,000 Variable
natulia [17]

Answer:

Sandy Shores Corporation

J's Segment Contribution Margin is:

= $700,000.

Explanation:

a) Data and Calculations:

Sales revenue                                        $1,300,000

Variable operating expenses                    600,000

Contribution                                             $700,000

Fixed expenses:

Traceable to J and controllable by J        275,000

Traceable to J and controllable by others 80,000

Total fixed expenses                                355,000

Net operating income                            $345,000

b) The contribution margin is the difference between total sales revenue and the variable costs.  The idea of segment contribution margin is that it covers the fixed expenses, whether controllable by the segment or not.

5 0
2 years ago
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