B. When the subject matter is objective and informative
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Answer:
The answer is true.
Explanation:
Preference or preferred shareholders are synonymous to lenders to a business or company. Preferred shares are like debt to a business. They possess the characteristics of both debt and equity and in the case of liquidation, they have to be settled first. Common shareholders are the last shareholders to settled.
Answer:
8%
Explanation:
Calculation to determine the stated annual rate of interest on the bonds
First step is to calculate Semi annual coupon rate
Semi annual coupon rate= 400 ÷ $10,000
Semi annual coupon rate= 4%
Now let determine the Annual rate of interest
Annual rate of interest= 4% × 2 (Semiannually)
Annual rate of interest= 8%
Therefore the stated annual rate of interest on the bonds is 8%
Answer:
Increase by 5%.
Explanation:
Given that,
cross-price elasticity of demand between goods X and Y = 4
Percentage increase in consumption of good X = 20 %
cross-price elasticity of demand = Percentage change in quantity demanded for good X ÷ Percentage change in price of good Y
4 = 20 ÷ Percentage change in price of good Y
Percentage change in price of good Y = 20 ÷ 4
= 5%
Therefore, the price of good Y must be increase by 5% in order to increase the consumption of good X by 20 percent.
