madz4785 madz4785

02-03-2020
Business

contestada

If a preferred stock plans to pay a $5 dividend annually forever and you consider the risk of the company to warrant an 8% return, how much should you be willing to pay for it

Respuesta :

ijaz4308 ijaz4308

06-03-2020

Answer:

$62.5

Explanation:

The amount that i should be willing to pay for the preferred stock that give me $5 dividend annually forever shall be determined through following mentioned formula:

Price of share=Dividend/risk of return

Applying the data given in the question to the above mentioned formula:

Dividend=$5

Risk of return=8%

Price of share=5/8%=$62.5

Answer Link

Otras preguntas

What is a major difference between the Roman Catholic Church and the Eastern Orthodox Church? A. Roman Catholic churches perform a mass, but Eastern Orthodox c

Necesito 2 oraciones para cada palabra: yo duermo, yo digo, yo tengo, yo pongo, yo traigo, yo voy, yo hago, yo vengo, yo sueño y yo parezco. PERO CADA PALABRA N

Which of the following statements best describes a suspension feeder? A They are all primary consumers. B They are all filter feeders. C They are all nekton.

True or false? You do not use a diagnostic code when posting an administrative fee for filling out a life insurance form. A.True B. False

In addition to Jews, a specific group that the Nazis systematically killed during the Holocaust was

Determine whether quantities vary directly or inversely and find the constant of variation. It took Peter 3 hours to drive to his friend in Connecticut when he

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Please help 1. What is a tessellation, and how are transformations used to create a tessellation? Answer: 2. Which regular

which region of the western United States does the sub-region of New England border

Find the value of x. The diagram is not to scale.

Select the correct answer. Which sentence in this excerpt from Thomas Paine's "The Crisis, No. 1" best summarizes Thomas Paine's method of persuasion? A. He p