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PolarNik [594]
4 years ago
10

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of ret

urn earned with the assets invested from the preferred stock issuance is called:
Business
1 answer:
Sergio [31]4 years ago
3 0

Answer:

financial leverage

Explanation:

Preferred stocks are very similar to bonds since they both yield fixed returns. The difference is that interest paid on bonds is called coupon while interest paid on preferred stock are considered dividends. But they essentially are the same, they both represent debt. The advantage of preferred stock is that when a company doesn't make a profit it doesn't need to pay dividends, while it should always pay coupons.

Whenever you take a loan and use it to finance your business activities, it is called financial leverage. When the investment produces a higher return than the interest paid, the company's equity increases.

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West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26 percent of his business
Alexus [3.1K]
Fred Schultz, the owner of the West Medical Supply had lost 26 percent of his business. The cause of the lost was because of the two drug stores and close local hospital. In order for Fred to redeem his lost and to gain more, he needs to do some research on demographic changes. By this, he may be able to determine the population and to figure out where and how he can go through with his business.
Answer: D
7 0
4 years ago
Compare the policy ideas of President Herbert Hoover and President Franklin D. Roosevelt during the Great Depression. How did th
never [62]

Answer:

Besides being quite incompetent, President Hoover was probably out of touch with reality. He argued that people were out of jobs because they were looking for better jobs, like selling apples.

President Roosevelt, who was the complete opposite of his predecessor, believed in the Keynesian theory of government, and increased government spending with the New Deal. His New Deal policy helped the economy rebound from the Great Depression and the start of WWII also helped the US economy. This increase in government spending helped to create new jobs and businesses, plus other social advances (e.g. social security, unemployment benefits, etc.).

If you want to compare both presidents, Hoover would be as dark as a black hole and Roosevelt as bright as the sun.

5 0
3 years ago
Which of the following prices is most elastic?
mamaluj [8]
An elastic products prices are responsive to changes in demand. Generally, the necessity of the product is related to it's elasticity. For example, insulin is essential for diabetics, so the price is extremely inelastic—people will pay any amount because it is a life or death situation. The price of a new MP3 player can be inelastic, especially because results show that people want the newest thing, and will pay more if it works better than the previous model. Additionally, the price of "scalper" tickers to the World Series will increase by demand, but they will still sell regardless. The price of dairy products, however, is rather elastic; this is because when the price rises, people switch to a cheaper brand.  The difference between an inelastic and elastic product is that elastic products have substitutes, whereas inelastic products have no substitutes (or sometimes very few).

Answer: A. the price of dairy products

hope this helps :)
5 0
3 years ago
YOU EARNED 96,000 LAST YEAR YOUR EFFECTIVE
HACTEHA [7]

Answer:

WHO U YELLING AT?

Explanation:

5 0
3 years ago
A factory costs $400,000. It will produce an inflow after operating costs of $100 000 in year 1. $ 200,000 in year 2, and $ 300,
Delvig [45]

Answer:

NPV = $62,258.56

Explanation:

initial outlay year 0 = $400,000

cash inflow year 1 = $100,000

cash inflow year 2 = $200,000

cash inflow year 3 = $300,000

discount rate = 12%

using a financial calculator, NPV = $62,258.56

if you do it by hand:

NPV = -$400,000 + $100,000/1.12 + $200,000/1.12² + $300,000/1.12³ = -$400,000 + $89,285.71 + $159,438.78 + $213,534.07 = $62,258.56

3 0
3 years ago
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