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 182 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
Wow, this really help

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

History of the number of observed sunspots during the last 250 years, which shows the ~11-year solar History of the number of observed sunspots during the last 250 years, which shows the ~11-year solar
On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
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
Newborns have a preferred head and arm orientation. Newborns have a preferred head and arm orientation.
Preschool: 3–6 years. Preschool: 3–6 years.
Extinction and extirpation per years Extinction and extirpation per years
Video: Antidiuretic hormone (vasoconstriction, water reabsorption & sweat inhibition)

For a complete list of videos, visit our video library