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
Nikitich [7]
2 years ago
8

MNO preferred stock pays a dividend of $2 per year and has a price of $20. If MNO's tax rate is 21 percent, the required rate of

return on its preferred stock is found by which formula
Business
1 answer:
soldi70 [24.7K]2 years ago
7 0

The required rate of return on its preferred stock is found by using PW = D/R.

<u>Given Information</u>

Dividend per year = $2

Stock price = $20

Tax rate = 21%

Required rate of return (R) = ?

  • The formula for use to derive the Required rate of return includes PV = D/R, where PW means Present worth, D = Dividend per year and R means Required rate of return.

PV = D/R

$20 = $2 / R

$20 * R = $2

R = $2 / $20

R = 0.1

R = 10%

Therefore,, the required rate of return on the preferred stock is 10%.

In conclusion, the required rate of return on its preferred stock is found by using PW = D/R.

See similar solution here

<em>brainly.com/question/17322679</em>

You might be interested in
The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is
slavikrds [6]

deferral is the answer.

A deferral in accrual accounting is an account on which income or expenses are recorded at a later date. Pensions, surcharges, taxes, income, etc. Accruals and deferrals can be viewed as either assets or liabilities, depending on the type of accrual. See also boundaries.

deferral means money paid or received before the product or service is offered. Here is an example of postponement: Insurance fee. Subscription-based services (newspapers, magazines, TV shows, etc.) Prepaid rental.

deferral is a payment made in one accounting period but not reported until the next accounting period. For example, if you made a payment at the end of the year but did not report until the new year, this will be postponed.

Learn more about deferral here:brainly.com/question/16967814

#SPJ4

5 0
1 year ago
Suppose you have a dinner gift certificate for $20. You can use it to order meatloaf or pot roast. Meatloaf costs $12, and pot r
antiseptic1488 [7]

Suppose you have a dinner gift certificate for $20. You can use it to order meatloaf or pot roast. Meatloaf costs $12 and pot roast costs $14. Meatloaf and pot roast are both worth $15 to you. The dollar value of the opportunity cost of choosing meatloaf instead of pot roast is $15 EX.

<h3>What Is Opportunity Cost?</h3>

Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked. Understanding the potential missed opportunities when a business or individual chooses one investment over another allows for better decision making.

Opportunity cost is often overlooked by investors. In essence, it refers to the hidden cost associated with not taking an alternative course of action. If, for example, a company pursues a particular business strategy without first considering the merits of alternative strategies available to them, they might fail to appreciate their opportunity costs and the possibility that they could have done even better had they chosen another path.

Formula Of Opportunity Cost

​Opportunity Cost=FO−CO

where:

FO=Return on best forgone option.

CO=Return on chosen option.

​

Learn more about Opportunity cost on:

brainly.com/question/12121515

#SPJ4

8 0
2 years ago
C&amp;K Brewing Company is a microbrewery in western Canada. It produces Maiden’s Honor brand ale, a dark beer called Warrior’s
ehidna [41]

Answer:

The correct answer is letter "A": concurrent .

Explanation:

Concurrent control is adopted to regulate ongoing activities in an organization so that they can meet the company's standards. This type of control is chosen to ensure that the output will have the results expected. It implies measuring the quality of the processes at a certain point in time to determine to continue with them or not.

3 0
3 years ago
Purposely understaffing customs offices to cause time delays, requiring special licenses that take a long time to obtain, and re
crimeas [40]

Answer: B Administrative delays

Explanation:

Administrative delay means: any Governmental Entity’s failure to act within a reasonable time, in keeping with standard practices for such Governmental Entity, or within the time contemplated in the Interagency Cooperation Agreement, the Planning Cooperation Agreement, any of the Land Acquisition Agreements, the Tax Allocation Agreement, any Acquisition and Reimbursement Agreement.

7 0
3 years ago
Read 2 more answers
You just won the lottery and have two choices for how you will collect your money. You can collect $100,000 today or receive $20
patriot [66]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0
3 years ago
Other questions:
  • As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. this heterog
    5·1 answer
  • One of the most controversial aspects of the ada is the provision that requires employers to make reasonable accommodations for
    14·1 answer
  • Process redesign: a. is the fundamental rethinking of business processes. b. is sometimes called process reengineering. c. tries
    9·1 answer
  • Rural grocery stores often stock products geared to the average customer in its market area. Management assumes there are neglig
    13·1 answer
  • Classify crimes in order according to the<br> severity of their potential sentences.
    6·1 answer
  • A grapefruit farmer in central Florida is trying to decide whether to take protective action to limit damage to his crop in the
    11·1 answer
  • A sporting equipment store expects to purchase $8,700 of ski boots in October. The store had $2,300 of ski boots in merchandise
    5·1 answer
  • A debit may signify a(n) a. decrease in a liability account b. decrease in an asset account c. increase in the retained earnings
    14·1 answer
  • What is the width of the product mix?
    15·1 answer
  • DeShawn formed a hiring committee for his advertising company. Six employees (including two managers) met to discuss applicants
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!