Answer:
The company's cost of preferred stock is 5.1%
Explanation:
In order to find the cost of the preferred stock we will need to divide the dividend the company pays on it by the net amount that the company is receiving for selling it.
In order to find the dividend we will multiply 9% by the par value of 20
Dividend = 0.09*20=1.8
Now we need to find the net amount the company receives for selling the preferred stock.
The company sells the stock for $40 but also has a issuing cost of $5, so in order to find the net amount we will subtract the cost from the price.
40-5= 35
35 is the net amount the company receives.
Now we will divide the the dividend 1.8 by the net amount 35
1.8/35=0.051
=5.1%
The company's cost of preferred stock is 5.1%
Answer:
Since a defeasance clause conveys title upon satisfaction of the loan, these types of clauses are typically only used in title theory states where the bank holds ownership of the home until the mortgage is paid off.
This change is called condensation.
Answer:
yes and no.
Explanation:
it depends on how responsible that teen is and what choices they tend to make.
Answer:
It shifts to the left by $200 million at each price level
Explanation:
Given that,
Multiplier = 2
Net exports decrease by $100 million
Change in aggregate demand is calculated as follows:
Multiplier = Change in Aggregate Income (ΔY) ÷ Change in Exports (ΔX)
2 = ΔY ÷ (-$100)
ΔY = -$200
Therefore, the national income will fall by -$200 and hence the aggregate demand will fall by -$200 . Hence, the aggregate demand curve will shift to the left.
