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OLga [1]
2 years ago
8

What is the value of a preferred stock where the dividend rate is 14% on a $100 par value? Assume the discount rate for this sto

ck is 12%?
Business
1 answer:
Ulleksa [173]2 years ago
8 0

Answer:

Value of preferred stock will be $140

Explanation:

We have given par value of preferred stock = $100

Dividend rate = 14 %

Discount rate on preferred stock = 12%

Preferred stock dividend =face\ value\times dividend\ rate=100\times 0.14=14

We have to find the value of preferred stock

Value of preferred stock =\frac{preferred\ stock\ dividend}{discount\ rate}=\frac{14}{0.1}=140

So value of preferred stock will be $140

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A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What
motikmotik

Answer:

Both employment and the real wage rate would decrease

Explanation:

Given that the capital stock of a nation or country jas a direct impact on such country in terms of savings and investments which directly translates to additional.economic development.

Hence, in this case, when a tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate is that "Both employment and the real wage rate would decrease"

This because there won't be adequate money available to create more employment. And with lease employment opportunities than the available labor, the real wage rate tends to decrease over time.

4 0
3 years ago
A firm reports a net margin of 5.00%. The firm has 1,456,800.00 million shares outstanding. The firm has invested in a new produ
n200080 [17]

Answer:

To find Earning per share, we can find this by the following formula:

Increase in Earnings Per Share = Net profit of new products / Number of shares

and

Net Profit of new products = 5% * $4,898,300 = $244,915

Increase in Earnings Per Share = ($244,915) / 1,456,800 = 16.81%

8 0
3 years ago
Which repayment plan will you be placed on automatically?
BartSMP [9]

The standard repayment plan is the basic plan for repaying student loans. You're automatically placed in this plan when you start repayment, unless you select a different option.

4 0
2 years ago
A man aged 40 wishes to accumulate a fund for retirement by depositing $1,000 at the beginning of each year for 25 years. Strati
Firdavs [7]

Answer:

The man will made 15 drawins for 31,468 at their retirement age.

Explanation:

We solve for the future value of the annuity-due (deposits at the beginning)

C \times \frac{(1+r)^{time} -1}{rate}(1+r) = FV\\

C 1,000.00

time      25

rate         0.04

1000 \times \frac{(1+0.04)^{-25} -1}{0.04}(1+0.04) = PV\\

FV $375.1168

Now, we calcualte the amount of the withdrawals considering the new rate:

PV \div \frac{1-(1+r)^{-time} }{rate}(1+r) = C\\

375.116802253964 \div \frac{1-(1+0.035)^{-15} }{0.035}(1+0.035) = C\\

C  $ 31.468

7 0
3 years ago
This area offers the broadest possible range of job options:
RSB [31]
 probably New York i think so

4 0
3 years ago
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