Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1)Indigo Company is offered a contract whereby it will be paid $10,000 every six months for the next five years. The first payment will be
1)Indigo Company is offered a contract whereby it will be paid $10,000 every six months for the next five years. The first payment will be received six months from today. What will the company be willing to pay for this contract if it expects a 16% annual return on the investment? a) $ 49,114.50 b) $ 72,498.00 $ 67,101,00 d) $ 98,229.00 e) $ 59,890.50 2) Vector Corporation has outstanding 3,000 shares of $7, noncumulative and nonparticipating preferred and 10,000 shares of no par value common shares. Dividends have not been paid on the preferred shares for the current and one prior year. The corporation has recently prospered, and the board of directors has voted to pay out $49,000 in dividends. If the $49,000 is paid out, how much should the preferred and common shareholders receive per share? a. $ 1.14 per share preferred, $4.56 per share common. b. $ 9.33 per share preferred, $2.10 per share common. C. $ 7.00 per share preferred, $2.80 per share common. d. $14.00 per share preferred, $0.70 per share common. $12.25 per share preferred, $1.23 per share common
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started