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Horizon Communications Stock Pays a Fixed Annual Dividend of Of $3.00.Because

question 25

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Horizon Communications stock pays a fixed annual dividend of of $3.00.Because of lower inflation,the market's required yield on this preferred stock has gone from 12% to 10%.As a result:

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Definitions:

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

Warranty Work

Repair or replacement services provided at no charge, covered under a product’s warranty, usually to fix defects or malfunctions within a specific period after purchase.

Sales Price

The amount a customer pays or is charged for a product or service.

Part Replacement

The process of substituting a defective, broken, or outdated component of a machine or system with a new one.

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