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Nana76
2 months ago
8

Your firm has preferred stock outstanding that pays a current dividend of $2.00 per year and has a current price of $21.50. Curr

ently, preferred stock makes up approximately 15% of your firm's long-term financing. What is the market required rate of return on your firm's preferred stock
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
7 0

Answer:

The required return amounts to 9.30%

Explanation:

The current dividend for this year is given as $2.00 annually.

The present price is noted to be $21.50.

We need to determine the market required return.

The required return is calculated as the ratio of the current dividend to the current price.

Required return

=\frac{2}{21.50}=0.0930 = 9.30 %

Hence, the required return is 9.30 %.

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Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to
Mariulka [3825]

Karen dividió su comisión a partes iguales con su corredor, por lo que ella recibe:

Comisión de Karen = $3,522.75 × 0.5 = $1,761.375

El corredor de Karen se llevó el 55 % del total de la comisión, por lo que Karen obtiene solo el 45 % del total. Entonces, la comisión total debe ser:

Comisión total = $1,761.375 ÷ 0.45 = $3,914.17

Con una tasa del 7 %, el precio de venta del inmueble es:

Precio de venta = $3,914.17 ÷ 0.07

<span>Precio de venta = $55,917</span>

6 0
3 months ago
Tryst Energy Inc. has an average age of inventory of 65 days, an average collection period of 60 days and an average payment per
soldi70 [3635]

Answer:

A total of $600,000 is needed for financing to support the cash conversion cycle

Explanation:

To determine the financing requirement, we start by calculating the cash conversion payable illustrated as follows:

Cash conversion cycle = Average inventory age + Average collection duration - Average payment time

= 65 + 60 - 65

= 60 days

Next, we must utilize the financing equation shown below:

= Total annual operating cycle outlays × cash conversion cycle ÷ total days in a year

= $3,650,000 × 60 days ÷ 365

= $3,650,000 × 0.16438

= $600,000

Hence, a financing amount of $600,000 is essential to sustain the cash conversion cycle.

4 0
2 months ago
The firm initially produced 500 pants and 700 shirts. If the firm decides to increase the number of shirts by 100 units, the opp
Free_Kalibri [3773]
<span>If the business opts to raise shirt production by 100 units, the corresponding opportunity cost will be 200 pairs of pants. Should the firm be at point E and choose to boost shirt output by 500 units, the opportunity cost rises to 400 pairs of pants.</span>
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2 months ago
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1. Think about the phrase "a financially secure retirement." In two to three sentences, describe what a financially secure retir
Scilla [3833]

Answer: Achieving peace of mind

Explanation:

A secure retirement plan focused on financial stability includes:

Automating savings.

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Assessing spending habits and living frugally.

Investing towards future goals.

7 0
3 months ago
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