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2 years ago

An investor would expect which type of preferred stock to pay the highest stated dividend rate?

1 answer:

3 0

An investor could count on which sort of preferred stock to pay the very best said dividend rate: Callable preferred.

Preferred stock is a form of stock that has characteristics of each share and bond. Like bonds, desired shares make coin payouts, often at a higher yield than bonds, whilst supplying better dividend returns and much less dangerous than not unusual inventory.

The primary distinction between Preferred and common stock is that favored stock gives no balloting rights to shareholders at the same time as common stock does. desired shareholders have priority over a company's earnings, which means they are paid dividends before commonplace shareholders.

Preferred stocks are generally much less risky than common dividend shares, and carry better yields, however lack the opportunity for price appreciation as the issuing company grows. additionally they pass with out balloting rights.

Learn more about preferred stock here: brainly.com/question/18068539

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You are on your daily jog when a car negligently pulls in front of you. Unable to stop, you run

babymother [125]

Answer:

<u>medically speaking, Yes!</u>

Explanation:

Since the scenario only <em>involves the individual running into the car, not the car hitting the individual</em>; meaning that he'll have less severe injuries.

To be able to recover from the harm done, the individual may need first aid treated.

3 0

3 years ago

If when the price of product e decreases by 2%, this causes its quantity demanded to increase by 14% and the quantity demanded f

hodyreva [135]

Cross elasticity of demand measures the responsiveness in the quantity demand of one good when a change in price takes place in another commodity or good. It is calculated by dividing the percentage change in the quantity demanded of one good by the percentage change in price of other good.
Therefore, in this case, cross elasticity of demand will be;
17%/-2% = - 8.5 (-2% because its a decrease)
Thus , the elasticity will be -8.5

3 0

3 years ago

A fall in the value of the dollar againstother currencies makes U.S. final goods and services cheaper toforeigners even though t

Mars2501 [29]

Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.

Explanation:

The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.

If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.

It's only a change in price that result results in a movement along the aggregate demand curve.

Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.

Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.

The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.

5 0

3 years ago

Chris has been offered a seven-year bond (face value $1,000) issued by Bayley Ltd at a price of $943.22. The bond has a coupon r

ZanzabumX [31]

Answer:

As the actual price of such bonds should be $950.51 and the bonds are offered at a lower price, the bonds should be bought at the offered price.

Explanation:

To determine whether the bonds should be bought at the given price or not, we first need to calculate the price of the bond. The formula for the price of the bond is attached.

The interest payed by the bonds can be treated as an annuity.

The semiannual rate will be = 9% / 2 = 4.5%

The number of semi annual payments will be = 7 * 2 = 14

The YTM expressed semi annually will be (r) = 10% / 2 = 5%

Semi annual coupon payment or C = 1000 * 0.045 = 45

Bond Price = 45 * [(1 - (1+0.05)^-14) / 0.05] + 1000 / (1+0.05)^14

Bond Price = 950.5068 rounded off to $950.51

As the actual price of such bonds should be $950.51 and they are offered at a lower price, the bonds should be bought at the offered price.

5 0

3 years ago

Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note paya

masya89 [10]

Answer:

1. January 10:

Inventory account increases by $25,500

Account payable increases by $25,500;

Total asset will increase by $25,500 and total liabilities will increases by $25,500. Equity remains the same.

March 1:

Cash account increases by $55,000.

Promissory note payable increases $55,000

Total asset will increase by $55,000 and total liabilities will increases by $55,000. Equity remains the same.

The amount of cash will be paid at maturity date (Sep 1) of the note is $56,787.5

Jan 10: debt-to-assets ratio = 0.70, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

March 1: debt-to-assets ratio = 0.72, thus increase in Debt to asset ratio comparing to the ratio 0.69 at the beginning

Explanation:

- Working note for 2: Repayment will include Face value + Interest rate expenses incurred = 55,000 + 55,000 * 6.5% *6/12 = $56,787.5

- Working note for 3:

Jan 10: Debt-to-asset ratio = (450,000 + 25,500) / (650,000 + 25,500) = 0.70

Mar 1: Debt-to-asset ratio =(450,000 + 55,000) / (650,000 + 55,000) = 0.72

6 0

3 years ago