Stimpson Inc. preferred stock pays a $.50 annual dividend. What is the value of the stock if your required rate of return is 10%

Answers

Answer 1

Answer:

$5.00

Explanation:

Market value can be regarded as the agreed price where both the buyer and seller perform their transaction, i.e the price buyer willing to buy and the seller willing to sell, which is intrinsic

Given

annual dividend= $50

rate of return = 10%

value of the stock = (annual dividend)×(rate of return)

=$50 *0.10

= $5.00


Related Questions

The financial statement that reports assets liabilities and stockholders Equity as of the last day of the is called:_____.1. Balance Sheet.
2. Income Statement.
3. Statement of Cash Flows.

Answers

Answer:

1. Balance Sheet.

Explanation:

The balance sheet shows the Assets, Liabilities and stockholders equity at the end of a period.

Balance Sheet shows the financial position of  a business. The balance sheet follows the concept of the Accounting equation as follow

Assets = Stockholders equity + Liabilities

Formate of a balance sheet is attached with the answer please find it

Employees are most likely to change a job because of:

Answers

Answer:

increasing salary for fullfilling their demand

Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 145 days after the purchase?

Answers

Answer:

itififjdjidkridjdjjr

Say the reserve requirement is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:_______

a. adds $10,000 in bank reserves.
b. eliminates $2,000 in bank reserves.
c. eliminates $10,000 in bank reserves.
d. adds S2,000 in bank reserves.

Answers

Answer:

a. adds $10,000 in bank reserves.

Explanation:

Given that

Reserve requirement is 20%

Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves

Therefore as per the given situation, the option a is correct

And, the same is to be considered

Thus, all the other options are incorrect

Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2019 Schedule C reports net profits of $15,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2019. Serena also pays long-term care insurance premiums of $600 in 2019.

Answers

Explanation:

7,545 + 420 = 7,965

Because Serena is 38 years old, she is limited to $420 on long-term care insurance premium deductible.

Answer:

fgdhdth

Explanation:

Which is NOT a type of written communication used in the business world?

A. Letters and emails
B. Brochures and advertisements
C. PowerPoints and memos
D. All of the above ARE used in the business world
I'll mark Brainliest

Answers

Answer:

D) All of the above

Explanation:

This because, Letters and emails are written ways to communicate with co-workers, friends, & family, brochures and advertisements are ways to communicate your idea or business production to other people to see and buy, powerpoints are ways to show a visual of what your product is and present it in a professional manner., and memos are written messages to help you remember something that's you would later present or use during business.

The Susan Hansen Group in St. George, Utah, sells $16,000,000 of single-family homes and townhomes a year. If single-family homes, with an average selling price of $250,000, sell 3.5 times more often than townhomes, with an average selling price of $190,000, how many of each are sold?

Answers

Answer:

52.605 family homes are sold

Explanation:

Let townhomes be x. The selling price is x(190,000). Family home has 3.5, more often than townhomes is 3.5x. The selling price is 3.5x(250,000). A year of single family homes and townhome are sells 16,000,000

3.5x(250,000) =x(190,000) = 16,000,000

875,000x + 190,000x = 16,000,000

1,065,000x = 16,000,000

x = 16,000,000 / 1,065,000

x = 15.03

So, 15.03 townhomes are sold

Hence, the family homes is 3.5x

3.5x = 3.5(15.03)

= 52.605

Therefore, 52.605 family homes are sold

Mapping the network of primary trading partners is something that should be done to: _________

a. Review and establish supply chain strategies
b. Obtain point-of-sale information from customers
c. Help the firm decide which businesses to include in its supply chain management efforts
d. Assess and improve internal integration of key supply chain processes

Answers

Answer:

Option c: Help the firm decide which businesses to include in its supply chain management efforts

Explanation:

Mapping the network of primary trading partners helps us to dentify critical supply chain trading partners.

Mapping according to this question is the representation of the plan, it features and sometimes drawn. It gives one a broad understanding about the work/project at hand.

Expenses and losses that are added back to net income because they do not actually use cash of the the company.

Answers

Answer and Explanation:

As we know that the expenses and losses contains the normal debit balance. At the time when they added back to the net income as they do not use the company cash so it would be shown in the non-cash charges or expenses as it is a non-cash expense because of not using the company cash

Therefore the same is to be considered

Elizabeth Brown is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.675 percent. If these bonds have a market price of $977.11, what yield to maturity can she expect to earn?

Answers

Answer:

The yield to maturity is 6.53%

Explanation:

The computation of the yield to maturity is shown below:

Given that

Assume future value be $1,000

The Present value is $977.11

PMT = $1,000 × 5.675% ÷ 2 = $28.375

NPER = 3 × 2 = 6

The formula is given below:

= RATE(NPER;PMT;-PV;FV;TYPE)

The present values comes in negative

After applying the above formula, the yield to maturity is

= 3.263% × 2

= 6.53%

A project has an initial cost of $2,400. The cash inflows are $0, $1,600, $1,100, and $700 over the next four years, respectively. What is the payback period?

Answers

Answer:

It will take 2.73 years to cover the initial investment.

Explanation:

The payback period is the time required to cover the initial investment:

Year 1= 0 - 2,400= -2,400

Year 2= 1,600 - 2,400= -800

Year 3= 1,100 - 800= $300

To be more accurate:

(800/1,100)= 0.73

It will take 2.73 years to cover the initial investment.

You expect to receive $2,600 upon your graduation and will invest your windfall at an interest rate of 0.33 percent per quarter until the account is worth $4,375. How many years do you have to wait until you reach your target account value?

a. 34.55 years
b. 39.49 years
c. 36.86 years
d. 42.53 years
e. 39.68 years

Answers

Answer:

n= 39.49 years

Explanation:

Giving the following information:

Present value (PV)= $2,600

Future value (FV)= $4,375

Interest rate (i)= 0.33/100= 0.0033

To calculate the number of years, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(4,375/2,600) / ln(1.0033)

n= 157.96/4

n= 39.49 years

You have been managing a $5 million portfolio that has a beta of 1.05 and a required rate of return of 9.775%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.75, what will be the required return on your $5.5 million portfolio

Answers

Answer:

9.62%

Explanation:

Re = Rf + (B x Rp)

Re = cost of equity = 9.775%

Rf = risk free rate = 4%

B = beta = 1.05

Rp = risk premium = ?

Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%

Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}

Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}

Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}

Re portfolio = 4% + 5.6249% = 9.62%

Suppose a popular band decides to hold a free concert in its hometown. Admission is available on a first-come, first-served basis. This concert is an example of: multiple choice an artificially scarce good. a public good. a common resource. a private good.

Answers

Answer:

None but a rival goods.

Explanation:

Public goods means a product that cannot reduce the consumption of one person due to the consumption of other person. Providing a free concert is necessarily excludable because it is possible to charge entrance. Only a limited person can attend the concert, so it is a rival goods. The free concert is not a public goods none common resources and private goods

What are some of the reasons that work teams have become more prevalent in todayâs organizations? How do they provide a competitive advantage?

Answers

Answer: working as a team sets up organizations for outstanding success and Improvement of team members

Explanation:

Working as a team has been a great help for most organizations. It's been realized that success experienced by many firms has been a result of what the teams accomplished when they worked together on a project, here are some reasons why they become prevalent;

1) Unity is being fostered within their activities, everyone is able to understand each other and know how to cooperate with the other

2) Productivity and efficiency is usually on the high as teams that work together put in a lot of energy to be productive in many efficient ways

3) There is an opportunity to learn from the group, thereby improving the skills of everyone on the group

They provide a competitive advantage when they work together, with everyone's effort, progress, success and achievement's are bound to occur.

Several alternatives are under consideration to enhance security at a county jail. Since the alternatives serve different areas of the facility, all that are economically attractive will be implemented. Determine which one(s) should be selected, based on a B/C analysis using an interest rate of 7% per year and a 10-year study period.

Extra Cameras (EC) New Sensors(NS) Steel Tubing (ST) Access Control (NS)
First Cost, $ 38,000 87,000 99,000 61,000
M & O, $/year 49,000 64,000 42,000 38,000
Benifits $/ year 110,000 160,000 74,000 52,000
Disbenefits, $/year 26,000 21,000 32,000 14,000

Answers

Answer:

The only two projects that actually yield a positive benefit are extra cameras (EC) and new sensors (NS). Since you have to decide based on which project yields the highest return, then you should choose extra cameras (EC) since its IRR is 92% which is the highest.

Explanation:

we have to determine the NPV of each project:

Extra cameras:

initial outlay = -$38,000

net benefit per year (for the 10 year period) = $110,000 - $26,000 - $49,000 = $35,000

NPV = $207,825

IRR = 92%

New sensors:

initial outlay = -$87,000

net benefit per year (for the 10 year period) = $160,000 - $21,000 - $64,000 = $75,000

NPV = $439,768

IRR = 86%

Steel tubing:

initial outlay = -$99,000

net benefit per year (for the 10 year period) = $74,000 - $32,000 - $42,000 = $0

NPV = -$99,000

Access controls:

initial outlay = -$61,000

net benefit per year (for the 10 year period) = $52,000 - $14,000 - $38,000 = $0

NPV = -$61,000

If the inflation rate is positive power is ?. This situation is reflected in the ? Rate of return on an investment, which will be ? The ? Rate of return

Answers

Answer:

If inflation rate is positive, purchasing power of money decreases thus the rate of returns on investment decreases.

Explanation:

The cost that varies depending on the values of the decision variables is a: ____________

a. dual cost.
b. sunk cost.
c. relevant cost.
d. reduced cost.

Answers

Answer:

The cost that varies depending on the values of the decision variables is a: ____________

c. relevant cost.

Explanation:

The relevant cost affects a decision outcome.  It is not like the sunk cost, which is fixed in total, no matter the decision being made.  A relevant cost is also known as a differential or incremental cost, because it makes a different under some decision alternatives.  Relevant costs are important to consider whenever a business entity is making a buy or make decision.  Relevant costs have their unit costs fixed while the total costs vary according to the alternatives.

Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$35,070 1 7,970 2 9,570 3 13,560 4 15,610 5 10,340 What is the project's IRR?

Answers

Answer:

The project's IRR is 17.28%

Explanation:

IRR is the discount rate at which the NPV of the project's cash flow becomes zero. ThNPV calculated using discount rate below IRR is positive and over IRR is negative.

To calculate the IRR using the following formula

IRR = Lower Rate + ( Lower rate NPV / ( Lower rate NPV - Higher rate NPV ) ) x ( Higher rate - Lower rate )

Now calculate the NPV two different rates

NPV at 17%

Year___Cash Flows__Preser value factor 17%__Present value

0______($35,070)___( 1 + 17%)^-0 = 1 _________($35,070)

1_______$7,970____ ( 1 + 17%)^-1 = 0.8547 _____$6,812  

2_______$9,570____( 1 + 17%)^-2 = 0.7305 ____$6,991  

3_______$13,560___ ( 1 + 17%)^-3 = 0.6244 ____$8,466  

4_______$15,610____( 1 + 17%)^-4 = 0.5337 ____$8,330  

5_______$10,340____( 1 + 17%)^-5 = 0.4561____ $4,716

NPV ___________________________________ $246

NPV at 18%

Year___Cash Flows__Preser value factor 18%__Present value

0______($35,070)___( 1 + 18%)^-0 = 1 _________($35,070)

1_______$7,970____ ( 1 + 18%)^-1 = 0.8475 _____$6,754.24  

2_______$9,570____( 1 + 18%)^-2 = 0.7182 _____$6,873.03

3_______$13,560___ ( 1 + 18%)^-3 = 0.6086 ____ $8,253.04

4_______$15,610____( 1 + 18%)^-4 = 0.5158 _____$8,051.46

5_______$10,340____( 1 + 18%)^-5 = 0.4371_____ $4,519.71

NPV ___________________________________ ($618.52 )

Nox place the values in the formula

IRR = 17% + ( ( $246 / ( $246 - ( - 618.52 ) ) ) x ( 18% - 17% )

IRR = 17.28%

talk about your experience as a leader of a team at school?

Answers

It was very good I lead them army of students at a football team

Answer:

ehhh its pretty lame ngl

Explanation:

but its also fun lol

In the context of managing inventories in supply chains,__________is the time between placement of an order and its receipt.

a. The lead time
b. A time series
c. The changeover time
d. A time horizon

Answers

Answer:

a. The lead time

Explanation:

The lead time is the time that shows the difference between the time at which the process gets started and the time at which the process get  finished. This can be reviewed in the manufacturing, supply chain management at the time when there is a prior processing, within processing and after processing

Therefore according to the given situation, the option a is correct

hence, all the other options are incorrect

=

Under the liquidity premium theory the shape of the yield curve depends on:_________

a. the relative return of investments in common stocks versus investments in corporate bonds.
b. the size of the federal government's budget deficit.
c. government tax treatment of long-term versus short-term bonds.
d. the expected pattern of future short-term rates and the size of the term premium at each maturity.

Answers

Answer:

Option d: The expected pattern of future short-term rates and the size of the term premium at each maturity

Explanation:

Liquidity premium theory is simply said to be a form of or the interest rate on a long-term bond that will equal an average of short-term interest rates expected to be in existence/ Occurrence in the overall the life of the long-term bond plus a liquidity premium that answers(responsed) to supply and demand conditions for that bond.

Term structure is regarded or said to be the relationship between interest rates and the yeild to maturity, where risk of default is held constant.

Select the correct answer.
How can a business save on premium paid to insurance companies while also mitigating risk effectively?
A.
by covering all the risks that a business could face
B.
by having a higher deductible
C.
by choosing an unlicensed insurance agent
D.
by making sure no employees take risks in the business

Answers

Answer:

the answer is b

Explanation:

WGU manufacturing receives an order for 2000 laptops. Karl, the production planner, realizes the company has no planned orders and has 1500 laptops on-hand. However, Karl has to keep a minimum of 1000 laptops on-hand at all times. Based on this information, what will the MPS reflect for the number of laptops to be produced?

Answers

Answer:

500

Explanation:

The computation of the MPS reflect for the number of laptops to be produced is shown below:

since it is mentioned in the question that there is a minimum of 1,000 laptop is on hand so here 500 should from inventory.

Therefore 500 should be produced for filling the order

Hence, the same is to be considered

Therefore the  number of laptops to be produced is 500

On July 1, 2008, Blitzer Inc. signed a one-year, 6% interest-bearing note payable for $5,000. Blitzer Inc. has a December 31 yearend. The amount of interest expense that should be reported in the 2008 income statement for this note (rounded to the nearest dollar) would be

Answers

Answer:

interest expense = $150

Explanation:

the journal entry to record accrued interest:

December 31, 2018, accrued interest from note payable

Dr Interest expense 150

    Cr Interest payable 150

interest expense = principal x interest rate x time = $5,000 x 6% x 6/12 = $150

An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000, and subject to a liability of $60,000. Gerry contributes cash of $100,000. What amount of gain must Rita recognize as a result of this transaction?A. $35000
B. $65000
C. $70000
D. $25000
E. None of these choices are correct

Answers

Answer:

A. $35000

Explanation:

The computation of the amount of gain that recognized is shown below:

= Value of the building adjusted + cash contributed - building liability + 50%  shares on debt

= $55,000 + $10,000 - $60,000 + $60,000 × 50%

= $55,000 + $10,000 - $60,000 + $30,000

= $35,000

Hence, the  amount of gain that recognized is $35,000

Therefore the correct option is A.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Government patent regulations specify that investors will maintain exclusive legal rights for how long

Answers

Answer:

A limited time

Explanation:

A stock had returns of 5.10%, 31.60%, and -21.20% in each of the past three years. Over the past four years, the arithmetic average annual return for the stock was 4.75%. What was the geometric annual return for the stock over the past four years?a. 2.91% (plus or minus 0.02 percentage points)b. 3.06% (plus or minus 0.02 percentage points)c. 3.37% (plus or minus 0.02 percentage points)d. 5.07% (plus or minus 0.02 percentage points)e. None of the above is within 0.02 percentage points of the correct answer

Answers

Answer:

The correct option is c. 3.37% (plus or minus 0.02 percentage points).

Explanation:

Note that since we are asked to find the geometric annual return for the stock over the past four years but we are only given the stock returns for  each of the past three years, this implies that the stock return to be used for the first year of the past four years will be the arithmetic average annual return for the stock over the past four years.

Therefore, the geometric annual return for the stock over the past four years can now be computed using the following formula:

Geometric average return = {[(1 + r1) * (1 + r2) * (1 + r3) * (1 + r4)]^(1/4)} - 1 ....... (1)

Where;

r1 = Stock return in year 1 = arithmetic average annual return = 4.75%, or 0.0475

r2 = Stock return in year 2 = 5.10%, or 0.0510

r3 = Stock return in year 3 = 31.60%, or 0.3160

r4 = Stock return in year 4 = -21.20%, or -0.2120

Substituting the values into equation (1), we have:

Geometric average return = {[(1 + 0.0475) * (1 + 0.0510) * (1 + 0.3160) * (1 - 0.2120)]^(1/4)} - 1

Geometric average return = 1.14166543988^(1/4) - 1

Geometric average return = 1.03367666813442 - 1

Geometric average return = 0.03367666813442, or 3.367666813442%

Rounding to 2 decimal places, we have:

Geometric average return = 3.37%

Therefore, the correct option is c. 3.37% (plus or minus 0.02 percentage points).

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.15, but management expects to reduce the payout by 6 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today

Answers

Answer:

the stock price is $58.23

Explanation:

The computation of the price pay per share today is shown below:

Stock price is

= Current year dividend ÷ (required rate of return - growth rate)  

= $11.15 × (1 - 0.06) ÷ (12% - (-6%)

= $10.48 ÷ 18%

= $58.23

Hence, the stock price is $58.23

We simply applied the above formula so that the correct value could come

And, the same is to be considered

A machine which cost $400,000 is acquired on January 1, 2017. Its estimated salvage value is $100,000 and its expected life is five years.

Required:
Calculate depreciation expense and complete the following schedules for 2017 and 2018 for each of the following methods.

A. Straight Line Depreciation
B. Sum of the Years Digits

Answers

Answer and Explanation:

The computation of the depreciation expense for 2017 and 2018 under the following methods

a. Straight-line method

= (Purchase cost - residual value) ÷ (estimated life)

= ($400,000 - $100,000) ÷ (5 years)

= $60,000

Since the depreciation expense under this method would remain the same for the remaining useful life

So for 2017 and 2018, the depreciation expense i.e. $60,000 would be charged every year.

b. Under the sum-of-the-year-digits method

For 2017,

= ($400,000 - $100,000) × 5 years ÷ ( 5 + 4 + 3 + 2 + 1)

= $300,000 × 5 years ÷ 15 years

= $100,000

For 2018, the book value is

= $400,000 - $100,000

The $100,000 is the depreciation expense of 2017 year

= $300,000 × 4 ÷ 15

= $80,000

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