This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Universal Export's Preferred shares will pay their first dividend in five years. The dividend will ... (Read 172 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
on: Jul 10, 2018
Universal Export's Preferred shares will pay their first dividend in five years. The dividend will be 6.5 on a 50-par value. Assume that the dividends will continue annually in perpetuity at that level.
 
  The required return of preferred shareholders is 9. What is the fair price for the preferred shares?
  A) 23.47
  B) 25.58
  C) 36.11
  D) 49.04
  E) 50.00

Question 2

Suppose you invest 1,000 today, compounded quarterly, with the annual interest rate of 5.00. What is your investment worth in one year?
 
  A) 1,025.00
  B) 1,500.95
  C) 1,025.27
  D) 1,050.95


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lcapri7

  • Sr. Member
  • ****
  • Posts: 350
Reply #1 on: Jul 10, 2018
Answer to Question 1

wohoo thank youuu.

Answer to Question 2

Answer: D
Explanation: D) With PV = 1,000, APR = 5.00, C/Y = 4, periodic interest rate = r = 0.0125, we begin by taking (1 + periodic rate) to the power of C/Y. Doing this gives: (1.0125)4 = 1.050945. Multiplying this number by PV gives 1,050.95.


xclash

  • Member
  • Posts: 681
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

at

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

The Upper Cave at Zhoukoudian yields ages of about 25,000 years for Homo sapiens. The Upper Cave at Zhoukoudian yields ages of about 25,000 years for Homo sapiens.
Primary School Attendance in World Regions Attending primary school is common but not universal, wo Primary School Attendance in World Regions Attending primary school is common but not universal, wo
The 2012 U.S. presidential campaign rang with “get tough” cries to end Iran’s nuclear capacity and c The 2012 U.S. presidential campaign rang with “get tough” cries to end Iran’s nuclear capacity and c
Reversible phosphorylation and direction of mRNP nuclear export Reversible phosphorylation and direction of mRNP nuclear export
Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa
Americium-243 has a decay constant of 9.39 × 10-5 years-1. How long will it take Americium-243 has a decay constant of 9.39 × 10-5 years-1. How long will it take
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library