Answer:
The answer is $115.38
Explanation:
Solution
Given that
The annual dividend on preferred stock = $7.50
Required return on preferred stock+= 6.5%
The next step is to find at what price should the preferred stock sell which is given as follows:
The rice of preferred stock = 7.50/6.5%
= $115.38
$115.38 is the price at which the stock preferred was sold.
Answer:
a commercial bank
Explanation:
A commercial bank is a deposit accepting institutions regulated by the central bank of a country. The banks play a crucial role in availing capital to businesses. They accept deposits in the form of savings from customers. They keep a small fraction(reserves) in their custody to cater for withdrawal and loan out the rest. Banks, therefore, pool resources together for businesses and households to borrow.
Since banks have a wide customer base, they are able to mobilize huge amounts of resources to loan out. Commercial banks are the best institution to issue a loan to Glenn and Maggie. Saving and loan, credit unions have a limited membership and may not have sufficient resources to issue a loan to Glenn and Maggie.
Answer:
Current Ratio= Current Assets/ Current Liabilities
Explanation:
Current Ratio= Current Assets/ Current Liabilities
The current ratio is an important measure of a company's ability to pay its short term obligations. It is defined as current assets divided by current liabilities.
Current assets are cash and other resources that are expected to be sold or used within one year or the company's operating cycle , whichever is longer. Examples are cash, short term investments , accounts receivable, short term notes receivable, goods for sale ( called merchandise or inventory) and prepaid expenses. Prepaid expenses are usually listed last because they will not be converted to cash ( instead they are used).
Current liabilities are obligations due to be paid or settled within one year of operating cycle, whichever is longer. they are usually settled by paying out current assets such as cash . Current liabilities often include accounts payable , notes payable, wages payable, taxes payable, interest payable and unearned revenues. Also any portion of a long term liability due to be paid within one year or the operating cycle whichever is longer is a current liability.
Answer:
d. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee.
Explanation:
A tax is an amount levied by the government on a good or service.
A tax increases the price of the good.
Burden of tax is borne by consumers and producers depending on who has the greater price elasticity.
A tax would increase the amount paid by consumers for a cup of coffee and reduce the amount received by suppliers.
A tax would reduce the quantity demanded and supplied, so equilibrium quantity would fall
I hope my answer helps you
Answer:
$138,1071
Explanation:
Given that
Net income = $832,500
Growth rate = 15 percent
Growth rate = 12 percent
The computation of the net income after four years is shown below:
Net income after four years = Current year net income × (1 + growth rate)^number of years × (1 + growth rate)^number of years
= $832,500 × (1 + 0.15)^2 × (1 + 0.12)^2
= $138,1071
