Patrick Company expects to generate free-cash of $120,000 per year forever

If the firm's required return is 12 percent, the market value of debt is $300,000, the market value of preferred stock is $70,000, and the company has 100,000 shares of stock outstanding. What is the value of Patrick's stock?
A) $6.30
B) $10.00
C) $7.00
D) $9.70


A

Business

You might also like to view...

What would you say is a unifying theme for the Ethics in Marketing Research examples related to research design in Chapter 3? Justify your answer

What will be an ideal response?

Business

The strategic objective of channel strategy known as "coverage" relates to how much the global market distribution systems cost.

Answer the following statement true (T) or false (F)

Business

An example of a recommendation is Both managers and classified staff members report that employee absenteeism has increased since the company's relocation

Indicate whether the statement is true or false

Business

Negative language is appropriate when

A) your message must be strong and emphatic. B) the reader wants to retain your goodwill. C) you are focusing your reader's attention on specific facts. D) a sentence contains a hidden verb or subject. E) jargon and slang would be misconstrued.

Business