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BlackZzzverrR [31]
2 years ago
14

A share of preferred stock pays a quarterly dividend of $2. 50. if the price of this preferred stock is currently $50, what is t

he nominal annual rate of return?
Business
1 answer:
Ainat [17]2 years ago
6 0

The nominal annual rate of return is 20%

Given,

Annual dividend = $2.50(4) = $10. rps

= Dps/Vps = $10/$50 = 0.20 = 20%

The nominal rate of go back is the quantity of cash generated by way of an investment before factoring in charges such as taxes, funding charges, and inflation. If an funding generated a ten% go back, the nominal rate would equal 10%.

Nominal interest price refers back to the hobby price earlier than taking inflation into consideration. Nominal also can seek advice from the advertised or said interest rate on a loan, without contemplating any fees or compounding of interest.

Learn more about interest here: brainly.com/question/2294792

#SPJ4

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Assuming that Intel needs to borrow money in the bond market to build a new chip-making factory, an increase in interest rates a
Alexeev081 [22]

Answer:

The cost of borrowing money becomes greater.

Explanation:

To borrow money from the bond the firm Intel needs to issue bonds. Then, it needs to pay interest on these bonds. This interest is the cost of borrowing.

When there is an increase in the interest rate in the market, the firm will be required to more interest. This increases the cost of borrowing from the bond market.

The returns from the new factory may not be able to cover this increased cost of borrowing. As a result the firm will be discouraged from borrowing.

3 0
3 years ago
A bank receives a demand deposit of $10,000. The bank is now in a position to extend additional loans of $8,000. What is the leg
ANEK [815]

If the bank is now in a position to extend additional loans of $8,000. The legal reserve requirement is: 20 percent.

<h3>Legal reserve requirement</h3>

Using this formula

Legal reserve requirement=( Demand deposit -Additional loans/Demand deposit

Let plug in the formula

legal reserve requirement=($10,000-$8,000)/$10,000

Legal reserve requirement=$2,000/$10,000×100

legal reserve requirement=20%

Therefore the legal reserve requirement is: 20 percent.

Learn more about legal reserve requirement here:brainly.com/question/14177894

#SPJ1

3 0
2 years ago
Which investment is better stocks, bonds, or mutual funds and why?
Viefleur [7K]

\text{Hello There!}

\bold{Stocks} \text{is the act of putting money in a business and expecting to make a profit.}

\bold{Bonds} \text{are more of a safe to invest in, however, you cannot sell them for 12 months.}

\bold{Mutual\;Funds} \text{ is the act of investing in securities with other investors}

  Mutual Funds can be a good option if you're okay with the lack of investment decisions; however, people often lose money due to the risk of securities going down in value.

  {\underline{\underline{{Stocks}}} are going to be your best option for short-term investments.

   {\underline{\underline{{Bonds}}} are going to be your best option for long-term investments.

 {\underline{\underline{{Mutual\;Funds}}} are going to be your best option for investing in bigger stocks.

\boxed{There\;isn't\;a\;"best"\;option;\;it\;depends\;on\;what\;you\;prefer.}

\rule{300}{1.0}

3 0
3 years ago
Most stock agencies do not have their images online because of privacy issues. T or F
goldenfox [79]
The right answer for the question that is being asked and shown above is that: "TRUE." <span>Most stock agencies do not have their images online because of privacy issues. This statement is true as far as the stock of agencies is concerned.</span>
5 0
3 years ago
Read 2 more answers
Help quick please??
Sedbober [7]
D. They can cause employees to lose their jobs unfairly.
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3 years ago
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