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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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If you never answer then people will just never call you
So the second ring is the best choice
8 0
3 years ago
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3 0
3 years ago
Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c
Bumek [7]

Answer: Option A

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The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0
3 years ago
In ________ organizational cultures, more individuality is shown through the organization's rules being less strictly applied.
kap26 [50]

Answer:

weak

Explanation:

An organization's culture describe the behavior of an organization. It comprised of the beliefs and values that should be shared in the organization

In the case when there is a weak organization culture so here the rules of the organization should be less strictly followed instead of more strictly followed as it is a weak organization structure

Therefore the weak should be the term that should be applied in the current situation

3 0
3 years ago
In the _____ form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working rela
Molodets [167]

Answer: business to consumer

Explanation:

E-commerce simply means buying of goods and services online through the internet. Since it's a digitalized world now, this is common.

In the business to consumer form of e-commerce, firms want to develop buyer loyalty and repeat business but seldom develop a close working relationship with individual buyers.

4 0
3 years ago
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