Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
Answer:
Re-intermediation
Explanation:
Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.
So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.
Answer:
156
Explanation:
78
× 2
multiply the 2 by 8 first
then multiply the 7 by 2
Answer: $124800
Explanation:
First, we have to calculate the ammortization expense which will be:
= $468000 / 10
= $46800
May 2019 = ($46800 × 8/12)
= $31200
December 2020 = $46800
December 2021 = $46800
Ammortization expense will now be:
= $31200 + $46800 + $46800
= $124800
Answer:
Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Explanation:
Old Net profit margin = Net income/ Revenue
= $10,600/$205,000
= 5.170731707%
Old ROE = Net profit margin*Asset turnover*Equity multiplier
= 0.0517*1.33*1.75
= 12.03487805%
New net income = $10,600 + $10,250
= $20,850
New net profit margin = $20,850/$205,000
= 10.17073171%
New ROE = 0.1017*1.33*1.75
= 23.67237805%
Change in ROE = New ROE – Old ROE
= 23.67237805% - 12.03487805%
= 11.6375%
Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
