Answer:
b.True
Preferred Stock as their name suggest comes first in the dividend distribution.
If it makes no <u>purchase of the new shares </u>then, their investment will decrease to $76,800 as the market value no longer is $48 per share
This is an example of dilution that is, the decrease in both, business participation and also, value of the investment as new shares are issued the older investor will take a hit in their participation if they don't purchase additional shares in the new issuances
Explanation:
2,000 shares x $38.40 = 76,800
Answer:
c. fixed-rate assets is greater than the value of its fixed-rate liabilities.
Explanation:
In the case when the rate of interest is reduced than the profit of the bank is increased. Also this case applied when the variable rate assets is less than the variable rate liabilities or the fixed rate of the asset is more than the fixed rate liabilities as in the given case the rate of interest would fallen the interest i.e. paid out that reduce more than the reduction in the interest income
Hence, the option c is correct
Answer:
TBC means “To be confirmed“. It is used to describe an item that is not yet certain or is being developed.
Explanation:
