Business, 22.08.2020 01:01 GGerardi7552

Fifth National Bank just issued some new preferred stock. The issue will pay an annual dividend of $22 in perpetuity, beginning 11 years from now. If the market requires a return of 3.6 percent on this investment, how much does a share of preferred stock cost today

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Answer from: lizsd2004

$429.06

Explanation:

The computation of the cost of today preferred stock share is shown below:

But before that first determine the preferred stock value of 11 years from now which is

= Annual dividend ÷ rate of return

= $22 ÷ 0.036

= $611.11

Now the current value is

= $611.11 × Present value of discount factor at 3.6% in 10 years

= $611.11 ÷ 1.036^10

= $429.06

Answer from: Quest

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

Answer from: Quest

explore some of these tourist attractions

the metropolitan museum of art. source: anton_ivanov / shutterstock.

central park. source: gagliardiphotography / shutterstock.

national 9/11 memorial and museum.

empire state building.

statue of liberty.

the museum of modern art (moma)

rockefeller center.

brooklyn bridge.

explanation:

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