Answer:
In 2021, preferred stockholders will be paid $9000 dividends while common stockholders will be paid $1000 in dividends.
Explanation:
The preferred share are cumulative which means that they accrue dividends in case the company is unable to pay dividend in a certain year. This means that the company needs to pay the preferred dividend in future whenever it declares dividends if it has not paid the dividend on preferred share in the previous years.
The preferred dividends are paid prior to the common stockholders.
Thus, the dividend for 2019 and 2020 will be paid along with that of 2021 when the company pays dividends in 2021.
The preferred dividend per year is = 50 * 0.06 * 1000 = $3000
The accrued preferred dividends for 2019 and 2020 are = 3000 * 2 = 6000
Preferred dividend to be paid in 2021 = 6000 + 3000 = $9000
Common stock dividends to be paid in 2021 = 10000 - 9000 = $1000
Answer:
A policy instrument (variable directly under the control of policy makers)
Explanation:
The Fed's discount rate is a monetary policy tool used to expand or contract the money supply.
When the Fed lowers the discount rate, it is engaging in an expansionary monetary policy which will increase the money supply, lower interest rates and increase total aggregate demand.
When the Fed raises the discount rate, it is engaging in a contractionary monetary policy which will decrease the money supply, increase interest rates and fight rising inflation.
Answer:
The correct answer is letter "D": multiple systematic risk factors.
Explanation:
The Arbitrage Pricing Theory or APT weights the influence of different macroeconomic factors on an asset return. If the asset's price is different than the model's projection an opportunistic investor can buy and sell the asset for a profit. Those macroeconomic factors can include economic output, unemployment, inflation, savings or investments-specific considerations and they capture systematic risk.
Answer:
danger is used for the most severe hazards
Explanation:
