McKerley Corp. has preferred stock outstanding that will pay an annual dividend of $5.95 per share with the first dividend exactly 11 years from today. If the required return is 4.05 percent, what is the current price of the stock?
a. $71.15.
b. $120.10.
c. $68.54.
d. $73.86.
e. $124.67.

$94.93

Explanation:

In this question we are asked to calculate the current price of the stock.

To answer the question, we employ a mathematical approach.

The current price of the stock is computed as shown below:

Present value = Future value / (1 + r )^n

where r is the required return and n is the number of years

Future value is calculated as follows:

= Annual dividend / required return

= $ 5.95 / 0.0405

= $146.91 Approximately

So the present value will be:

= $ 146.91/ 1.0405^11

= $94.93 Approximately

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23