Answer:
$5.50 dividend per share to common stock
Explanation:
In case a company has cumulative preference shares then the company has to pay preference dividend in arrears
Here, preference dividend was not paid in the year 2017
Preference dividend for 2017 = 500 
$100 4%
= $2,000
Since the dividend is paid in between the year 2018, dividend is paid for the year 2017 and not for 2018 thus preference dividend is for a year, only for 2017
Therefore, dividend to common equity = $35,000 - $2,000 = $33,000
Dividend per share = $33,000/6,000 = $5.50 per share
Answer: must offer higher
Explanation:
The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.
This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.
In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.
Answer:
C.second option
Explanation:
The computation is shown below
The present value of option 1 is $100,000
And, the present value of option 2 is
= $94,000 + $10,000 × Present value of discounting factor(8%,3)
= $94,000 + ($10,000 ÷ 1.08^3)
= $101,938.32
So as we can see that the option 2 has the highest present value so the right option is c.
Answer: Option B
Explanation:
A trade restriction is an artificial restriction on the trade of goods and/or services between two or more countries.
The right option is B because the statement contains one error; domestic producers gain at the expense of foreign producers rather than domestic consumers.
