Answer:
the required return on the preferred stock is 3.33%
Explanation:
The computation of the required return on the preferred stock is shown below:
= Dividend ÷ Selling price per share
= $2.50 ÷ $75
= 3.33%
Hence, the required return on the preferred stock is 3.33%
We simply applied the above formula
Answer:
C. Create a rotating assignment so each team member shares note taking.
Explanation:
In the case noted in the question above, there is a situation that could be unpleasant if it were decided by some type of bias.
Therefore, the most appropriate alternative for the team to address this situation would be to create a rotating assignment for each team member to share the notes. This way it would not happen that a team member is always chosen to perform a task that causes dissatisfaction in the whole team. Creating a rotating assignment to carry out the task would guarantee the uniformity of the task assignment and avoid possible dissatisfactions, inequalities and interpersonal conflicts that could arise.
Answer:
The IRR (in %) for Project A is 31%.
Explanation:
Let IRR be x%
At IRR, present value of inflows = present value of outflows.
218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4
solving for x, we find:
x = 31%
Therefore, The IRR (in %) for Project A is 31%.
Answer:
The correct answer is d. Different economic models employ different sets of assumptions.
Explanation:
To approach the study of economic reality it is necessary, in some way, to simplify it; keep certain variables under control. Precisely for this, it is that economic models are built.
Economic models are built on principles of departure, called "assumptions." Such assumptions fulfill the same role as the postulates in geometry. That is:
- They are not subject to deduction from other more basic principles.
- They are "reasonably" true but not necessarily verifiable.
- They function as premises in the logical structure to deduce the conclusions and correlations found in the lowest levels of generality.
We can say then, that the theoretical explanations refer to invisible "relationships", whose existence is proposed by the theory, and whose implications are logically deduced, and then corroborated by observations. They consist of:
- Assumptions (eg subjects want to maximize their earnings).
- Relevant variables (eg price and quantity).
- Binding hypothesis (eg quantity demanded based on price).
- Conclusions or predictions of observable facts (eg prices will rise).
