E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $27 in perpetuity, beginning 16 years from now. If the market requires a return of 4.1 percent on this investment, how much does a share of preferred stock cost today?

Answers

Answer 1

Answer:

$360.43

Explanation:

Calculation for how much does a share of preferred stock cost today

First step is for us to calculate the price of the stock in Year 15 which is a year before the first dividend payment.

P15= $27 / .041

P15= $658.54

Last step is to calculate for the price of the stock today

P0= $658.54/ (1+.041)^15

P0= $658.54/ (1.041)^15

P0=$360.43

Therefore the amount that a share of preferred stock cost today will be $360.43


Related Questions

2. List 12 things you should consider when buying a used car.

Answers

1. interior and exterior condition
2. test drive
3. working conditions of accessories
4. clean title
5. how many miles it has
6. worn our tires
7. paperwork
8. condition under the hood
9. frame issues
10. vehicle history
11. rust damage
12. upholstery

Find out if the car has been recalled

inspect the color

Check all the glasses

inspect the mirror

inspect the interior

look for leaks

Ensure that the car drives smoothly

Test the suspension

that's all I know

hope you will find this helpful

Ebrima Kanteh works as a supervisor for an engineering company in Riyadh, Saudi Arabia. In the UK he had a reputation for speaking his mind and by doing so getting the best out of his staff. At the current project in Riyadh he supervises 12 British staff and nearly 50 Saudi staff. After a few months Ebrima has become increasingly frustrated by what he sees a less than effective Saudi team. Their lack of competence and slow work pace is worrying George. What should he do to try and bring the Saudi staff back into line?

Answers

Answer:

He should try to analyze and understand how Saudi workers view the role of a leader and teamwork. Cultural differences between Saudi Arabia and the UK are huge, the only similarity is that both are monarchies, but British monarchy stepped aside and doesn't rule anymore. While Saudi monarchy rules with an iron fist.

Some behavior or actions that are considered completely out of place or might even be illegal in the UK are totally normal in Saudi Arabia, and vice versa. I met someone that used to work in the middle east and he remembers that subordinates have a great respect for their leaders and do not question anything. But at the same time, normal motivation techniques didn't work with them. I remember he told me that in order to be able to make his team work he had to be rude with them and basically order them what to do and make sure they did it. This behavior would be unacceptable in western countries, bosses do not yell at employees all the time, but it worked for him there.

It wasn't the same country, but in order to work properly he had to overcome several cultural barriers and adopt several local customs. By the way, his subordinates were happy with him. No one ever confronted him and told him not to yell at people, since that is normal for them.

Ebrima will need to treat his British subordinates one way, and his Saudi subordinates another way. He should also talk to his fellow British employees and explain them why he is acting that way. If he doesn't, some of them might think he is abusing his authority. When my friend told about his experience I also thought he had become a really bad boss, but them he explained things to me in greater detail.

Sustainability requires adjustments at the margins, rather than a totally new approach to business. A. True B. False

Answers

Answer:

B)False

Explanation:

Sustainability is the ability to maintain things arround us without messing them up for the sake of the future. It call for a change at ways things(organization, business, institution s both government and private) are been there are four pillars of sustainability which are ;social, human, economic as well as environmental . Therefore, the statement from the question is FALSE.

Why do you think some service professionals prefer to work alone rather than in a team​

Answers

Answer:

They could be an intervert,Anbivert, it coul make more money or it could not require a team, etc

The EU began as a common market for Multiple Choice the coal and steel industries. the transportation industries. the textile and dairy industries. all imported goods from beyond Europe.

Answers

Answer:

The answer is "The coal and steel industries".

Explanation:

In compliance with the terms of the 1975 Constitutional Act, on 5 June 1975, the UK promised a Vote on Inclusion in the European  Union, often alluded to as the Vote on the European Union, the Single Market Vote as the EEC Participation referendum to measure support.

This Group established its Council of Europe Coal and Steel Community, that consolidated free flow of coal and steel as well as the freedom of access to sources of production in 6 countries.

Assuming a taxpayer has no other gains or losses for the year, a loss from the theft of a Section 1231 asset is treated as a capital loss.A. True B. False

Answers

Thanks for points.✌️✌️✌️

No-Growth Industries pays out all of its earnings as dividends. It will pay its next $4 per share dividend in a year. The discount rate is 12%. a. What is the price-earnings ratio of the company

Answers

Answer: 8.33

Explanation:

To solve the price-earnings ratio of the company, first we need to calculate the market price share which will be:

= Dividend / Discount rate

= 4/12%

= 4/0.12

= $33.33

The proce earning ratio will now be:

= Market price share / Earnings pee share

= $33.33/4

= 8.33 times

A perfectly competitive industry in long-run equilibrium comprises 200 identical firms. In one of the firms, the workers unionize and receive a 20% wage increase. What happens to the unionized firm in the short run and the long run

Answers

Answer:

Short Run

This is a perfectly competitive industry which means that prices are the same for all the companies. The company that will increase its wages will therefore be unable to increase its prices to match.

This means that a situation might develop where average variable costs will be more than average revenue. At this point the company would have to shutdown operations.

Long Run

If the other companies in the industry have not seen the wages of their workers increase, it would mean that the prices would remain the same as they were which means that the company with the increased wages cannot come back into business and they will exit the market.

If on the other hand, other companies have unionized and improved wages, the market price in the industry will rise and the original unionized company can come back into business as they will now be able to afford to pay their workers.

what are the 4 SOURCES of STRESS an entrepreneur may encounter and 3 ways they can DEAL WITH THIS STRESS.

Answers

Explanation:

An entrepreneur can have many challenges especially at the beginning of his journey when opening a new business. One of the main challenges is leading with stress, which can occur for several reasons.

The four main sources of stress in entrepreneurs are: loneliness, the need to anchor results, people and immersion in business people.

Each of these variables can arise from the fact that an entrepreneur can feel overwhelmed and pressured to make the business work, as there is always a capital invested in the business and a positive return on this money is expected to start something new. .

There is also the fact that the entrepreneur can spend a lot of time immersed in business, since he is the main interested in his business, which can cause loneliness and generate more stress. There is also the risk of establishing partnerships and societies with people and conflicts arising due to incompatibility of ideas, anti-ethical actions, etc.

To deal with stress, the entrepreneur must: delegate tasks, be aware of the signs that the body emits from fatigue and stress and balance time for work and social life. Because although the entrepreneur knows that he needs to work and work hard for his business to succeed, it is necessary to manage stress so that it does not hinder his performance, his creativity and capacity for innovation, it is necessary to recognize that we do not have to give at the same time, it is necessary to pay attention to mental health so that work can flow effectively.

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Answers

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

A national bank that is part of a financial holding company or a bank holding company is mainly supervised by the:________

a. Office of the Comptroller of the Currency.
b. Federal Deposit Insurance Corporation.
c. National Credit Union Administration.
d. Federal Reserve.

Answers

Answer: d. Federal Reserve.

Explanation:

Normally National banks are supervised by the Office of the Comptroller of the Currency(OCC) but there are some types of banks that are supervised by the Federal Reserve.

If a bank is owned or part of a financial holding company or bank holding company, the Federal Reserve is in charge of supervising the bank to ensure that it is meeting the complex laws of US banking.

Communication is a two way exchange that involves ________.
A. A supporter and a receiver

B. A sender and a receiver

C. A sender and a speaker

D. A announcer and a audience

Answers

Answer:

B.

Explanation:

Ashland Corporation sells 150 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $30 a share. Ashland sold the shares for $38 a share. The entry to record the sale is:___________

Answers

Answer:

Dr Cash $5,700

Cr Gain on Sale of Stock Investments $1,200

Cr Stock Investments $4,500

Explanation:

Based on the information given we were told that the Corporation sold 150 shares of common stock that was being held as an investment which means that in a situation where the shares were acquired at a cost of $30 a share in which the Corporation sold the shares for cost of $38 a share. The Journal entry to record the sale will be:

Dr Cash $5,700

(150 shares *$38)

Cr Gain on Sale of Stock Investments $1,200

($5,700-$4,500)

Cr Stock Investments $4,500

(150shares *$30)

LLG, Inc., which is a division of EPG, Inc., had sales of $3,000,000, total assets of $1,000,000, and net income of $250,000. Senior management of EPG, Inc. has set a target minimum rate of return for LLG, Inc. of 16%. Calculate LLG's residual income. Select one: A. $90,000 B. $160,000 C. $230,000 D. None of the answers are correct

Answers

Answer:

I think 250,000

Explanation:

I hope this is good answers

An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in

Answers

Answer:

Ethical impact statement.

Explanation:

An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in ethical impact statement. It is typically used by an organization and its shareholders to assess the underlying moral justifications for corporate actions and the consequent results of those actions in order to be in tandem with its mission, goal and objectives.

A coal mine cost $1,004,000 and is estimated to hold 56,000 tons of coal. There is no residual value. During the first year of​ operations, 7,000 tons are extracted and sold. Calculate depletion expense for the first year.​

Answers

Answer:

$125,500  

Explanation:

The initial cost of coal mine=$1,004,000

Estimated useful life=56,000 tons of coal

tons of coal extracted in the first year=7,000 tons

depletion expense=(cost of coal mine-residual value)*tons of coal extracted in the first year/estimated useful life

residual value =$0

depletion expense=($1,004,000-$0)*7000/56000

depletion expense=$1,004,000*7000/56000

depletion expense for first year=$125,500  

Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements would have been made during the _____ stage of the purchase decision.

a. information search
b. post-purchase behaviour
c. situational analysis
d. alternative evaluation
e. purchase decision

Answers

I think the answer is b

if a bank has total reserves of $100 000 and $1 million in deposits how much money can it lend if the required reserve ration is

Answers

Answer and Explanation:

The amount of money in each case is shown below:

a. When the reserve ratio is 5%

Required reserve is

= $1,000,000 × 5%

= $50,000

Now the excess reserves is

= $100,000 - 50,000

= $50,000

b. When the reserve ratio is 10%

Required reserve is

= $1,000,000 × 10%

= $100,000

Now the excess reserves is

= $100,000 - $100,000

= $0

If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a

Answers

Answer:

A. Project cash flow$2,600,000

C. $2,700,000

$100,000 Increase

Explanation:

A. Calculation for the Project cash flows

Sales revenues 9,000,000

Less Operating costs 6,000,000

Depreciation2,000,000

Operating income before taxes$1,000,000

(9,000,000-6,000,000-2,000,000)

Taxes (40%)400,000

(40%*1,000,000)

Operating income after taxes600,000

(1,000,000-400,000)

Add back depreciation2,000,000

Project cash flow $2,600,000

(2,000,000+600,000)

Therefore the Project cash flow will be $2,600,000

C. If the tax rate dropped to 30%, how would that change your answer to Part a

Operating income before taxes $1,000,000

Taxes (30%)300,000

(30%*1,000,000)

Operating income after taxes$700,000

(1,000,000-300,000)

Add back depreciation2,000,000

Project cash flow$2,700,000

(2,000,000+700,000)

Based on the above Calculation the project’s cash flow would increase by the amount of $100,000 ($2,700,000-$2,600,000)

If annualized nominal interest rates in the US and Switzerland are 12% and 8% respectively and the 90-day forward [one-year forward] rate for the Swiss franc is $1.0218, at what current spot rate for the Swiss frank will interest rate parity hold?

Answers

Answer:

Current spot rate for the Swiss frank will interest rate parity hold is $1.0214

Explanation:

As per given data

Annualized nominal interest rates in the US = 12%

Annualized nominal interest rates in the Switzerland  = 8%

90 days forward rate = $1.0218

As we know

According to interest rate parity theory

Forward rate differential = Interest rate differential

( ( F - S ) / S ) x (360/n) = ( ( 1 + ru ) / ( 1 + rs ) ) - 1

Where

F = Forward Rate = $1.0218

S = Spot rate = ?

n = numbers of days = 90 days

ru = Annualized nominal interest rates in the US = 12%

rs = Annualized nominal interest rates in the Switzerland  = 8%

Placing the values in the formula

( ( $1.0218 - S ) / S ) x (360/90) = ( ( 1 + 12% ) / ( 1 + 8% ) ) - 1

( ( $1.0218 - S ) / S ) x 4 = ( 1.12  / 1.08% ) - 1

( ( $1.0218 - S ) / S ) x 4 = 0.037037

( ( $1.0218 - S ) / S ) = 0.037037 / 4

( $1.0218 - S ) / S = 0.00925925

$1.0218 - S = S0.00925925

$1.0218 = S0.00925925 + S

$1.0218 = S1.00925925

S = $1.0218 / 1.00925925

S = $1.0214

8. Match the symptoms of older engines with the extra benefit of high-mileage olls: Engine seals become brittle,

shrink causing leaks.

A) Extra anti-wear additives to reduce friction

B) Contain special seal conditioners to help leaks

C) O Extra detergents to reduce deposits

Answers

Answer:

Engine seals become brittle,  shrink causing leaks - CONTAIN SPECIAL SEAL CONDITIONERS TO HELP LEAKS.

More rapid rate of Engine wear - EXTRA ANTI-WEAR ADDITIVE TO REDUCE FRICTION.

Increased blow-by gases and deposit formation - EXTRA DETERGENTS TO REDUCE DEPOSITS.

Place the components of the M2 money supply in order, from smallest to largest

Answers

Answer:

Small time deposits, money market mutual funds, currency, checkable deposits, savings deposits.

Explanation:

Mike Inc. makes a lump sum purchase for land and building and pays $300,000. The land has been independently appraised at $105,000 and the building has been appraised at $245,000. What percentage of the purchase price should be allocated to land

Answers

Answer: 30%

Explanation:

To solve this question, the first thing that is needed to be done is for us to calculate the total appraisal value. This will be:

= $105,000 + $245,000

= $350,000

The percentage of the purchase price that should be allocated to land will then be:

= 105,000/350,000

= 30%

On January 1, Year 1, Vaughan Company purchased equipment for $276,000. Freight charges amounted to $12,000 and there was a cost of $24,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $60,000 salvage value at the end of its 12-year useful life. Depreciation expense each year using the straight-line method will be:_______.a. $19,700.
b. $16,700.
c. $14,300.
d. $14,000.

Answers

Answer:

Depreciation expense each year will be $21,000

Explanation:

As the capitalized cost of an asset is the cost incurred to make the asset usable for the operations of the business.

Cost of Asset = Purchase price + Freight charges + Installation cost

Cost of Asset = $276,000 + $12,000 + $24,000

Cost of Asset = $312,000

Now $312,000 is the cost that is used for the depreciation purpose.

First we need to calculate the depreciable value

Depreciable value = Cost of Asset - Salvage value

Depreciable value = $312,000 - $60,000

Depreciable value = $252,000

Now Use follow formula to calculate the straight line depreciation expense for the year

Depreciation for theyear = Depreciable value / Useful life

Depreciation for theyear = $252,000 / 12 years

Depreciation for theyear = $21,000

As the given options are not correct as per given data. The solution made according to the given data.

Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year?
A. current price
B. net change
C. open price
D. a positive or negative result for the one-year change
E. previous close price

Answers

Answer:

D. a positive or negative result for the one-year change

Explanation:

The most relevant parameter of a stock's performance is the stock's returns. If a stock has been consistent in producing good returns,  the past financial year's results play a big role in determining whether to invest in its stock or not.

If Cynthia is interested in investing in Clothing Unlimited stock, she needs to look at its past performances and compare it with lay year's results. If the stock has been yielding consistent positive results, there is a big possibility that the trend will continue into the future.

Answer:

Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year?

A.

current price

B.

net change

C.

open price

D.

positive or negative result for the one-year change

E.

previous close price

Explanation:

Which answer choice is not one of the top 10 abusive lending practices?
a credit cards
b. high fees
C. bait & switch
d. balloon loan

Answers

Answer:

it's A

Explanation:

 

credit cards

The practise of applying unfair, dishonest, or abusive loan terms to customers is known as predatory lending.  Hence option A is correct .

What is predatory lending ?

These loans frequently come with excessive fees and interest rates, drain the borrower's equity, or place a creditworthy borrower in a loan with a worse credit rating (and higher cost), all to the lender's advantage.

Predatory lenders frequently employ pushy sales techniques and prey on the borrowers' ignorance of financial transactions. They lure, encourage, and help a borrower take out a loan they will not reasonably be able to repay through deceptive or dishonest conduct and a lack of transparency.

Any dishonest actions taken by lenders to persuade, induce, deceive, or aid borrowers into taking out loans they are unable to responsibly repay or must pay back are considered predatory lending back at a price that is significantly more than the going rate. Predatory lenders prey on the situation or ignorance of borrowers.

Learn more about abusive lending here

https://brainly.com/question/25766643

#SPJ6

Which of the following is included in GDP? a) Cash gifts from relatives during the holidays b) Welfare payments received by some households c) Payments received from selling stocks in oneâs portfolio d) The cost of a dinner at a restaurant

Answers

Answer:

D)the cost of a dinner at a restaurant

Explanation:

GDP which means Gross domestic product can be regarded as the monetary value of finished goods as well as services that is been produced within the country at a particular period of time. The 3 types of GDP are

✓Real Gross Domestic Product.[ occur after inflation has been considered)

✓Nominal Gross Domestic Product.(with normal price)

✓Gross National Product (GNP)

Therefore, Out of the given options, the only one that is included in GDP is "the cost of a dinner at a restaurant".

Brad has evaluated and selected the channel alternatives for his company.
There will be three channel levels, including two retailers and one wholesaler.
In addition, he has decided there will be one intermediary involved because of
that intermediary's stellar reputation. What is the next question Brad needs to
decide about the channel?
O Who will be in charge of the selected channels?
O What intermediary will offer discounts?
When will the channel implementation take place?

Answers

Answer:

The next question Brad needs to decide about the channel is:

When will the channel implementation take place?

Explanation:

This is the most logical question to ask after determining "the what" of channels to choose and "the how" to go about implementing the chosen channel.  With this determination, the plan is officially set for take-off launching.  This also makes the marketing plan implementable, as it now has a time-frame for implementation.

Michael​ Kremer's research suggests that higher population might stimulate technological progress. How can higher population stimulate technological​ change?

a. A rise in population at first leads to a decline in per-capita output, and the growth rate of per-capita output will decrease permanently.
b. The research may be just conjecture on the role of technology based on the growth of the world population.
c. A higher population puts more pressure on limited available resources, thereby increasing incentives to spur technological change.
d. A higher population immediately increases α, which, in turn, increases the balanced growth path.

Answers

Answer:

c. A higher population puts more pressure on limited available resources, thereby increasing incentives to spur technological change.

Explanation:

In the case when the population rises this result in rise in change in technology as the population rises it would be more pressure on the resources that are limited available so the incentive is also rises to spur the change in technology

Therefore as per the given situation, the option c is correcy

ANd, the same is to be considered

And, all the other options are wrong

Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because

Answers

Answer:

of product differentiation and consequent product promotion activities.

Explanation:

competitive industry is industry that give room for free entry as well as exit of of firms with just little barrier. Monopolistic competition can be regarded as a type of compitition whereby many companies are dealing with similar product/services in the industry even though it's not a perfect substitute. There is low barrier when entry a Monopolistic Industry. It should be noted that Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because of product differentiation and consequent product promotion

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