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NemiM [27]
3 years ago
10

International Imports (I2) pays an annual dividend rate of 10.40% on its preferred stock that currently returns 13.94% and has a

par value of $100.00 per share. What is the value of I2’s preferred stock? $100.00 per share $74.61 per share $111.91 per share $89.53 per share Suppose that due to high inflation, interest rates rise and pull the preferred stock’s yield to 18.12%. The value of the preferred stock will .
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

$74.61 per share , decrease.

Explanation:

First calculate value of preferred share if return is  13.94% ;

Value of preferred share =(Annual dividend rate  * Par value)/ Rate of return

Value = (0.1040* 100)/0.1394

Value = 10.40/ 0.1394

Value = $74.61

Next, calculate value of preferred share if return is  18.12% ;

Value of preferred share =(Annual dividend rate  * Par value)/ Rate of return

Value = (0.1040* 100)/0.1812

Value = 10.40/ 0.1812

Value = $57.40

Since the value has gone from $74.61 to $57.40, it means that the value will DECREASE.

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Answer:

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1. Poverty is more than an economic problem, its a source of social discontent and political________; However, economic ________
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Poverty is more than an economic problem, it is a source of social discontent and political unrest;  economic development has reduced the proportion of people living below the poverty line.

<h3>What is poverty?</h3>

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Hunger and starvation, restricted access to education and other basic services, social prejudice and exclusion, and a disinterest in decision-making are all examples of its expressions.

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Learn more about the poverty, refer to:

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8 0
1 year ago
which theory of economics believes the only way to increase economy growth is to remove regulations and lower taxes?
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2 years ago
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Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to <u>rise</u> in foreign exchange markets. The number of domestic products purchased by foreign (exports) will therefore <u>fall</u>, and the number of foreign products purchases by domestic consumers and firms(imports) will <u>rise</u>.

Net exports will therefore <u>fall</u>, causing the quantity of domestic output demanded to <u>fall.</u> This phenomenon is known as the <u>exchange rate</u> effect.

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