Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
Answer:
return of the asset = 13.94%
return of the asset = 13.11%
return of the asset = 11.46 %
Explanation:
given data
average return = 14.60 percent
geometric average return = 10.64 percent
observation period = 25 years
solution
we get here return of the asset over year by Blume formula that is
return of the asset = ( T- 1 ) ÷ ( N - 1) × geometric average + ( N -T) ÷ ( N - 1) × arithmetic average ..................1
here N is observation period and T is time
put value in equation 1
return of the asset =
return of the asset = 0.1394 = 13.94%
and
return of the assets = 
return of the asset = 0.13115 = 13.11%
and
return of the assets = 
return of the asset = 0.11465 = 11.46 %
The option of saving money that offers the most liquidity is a piggy bank. (option C)
<h3>What is liquidity?</h3>
Liquidity can be described as the ease with which an asset can easily be converted to cash. Paper currency and coins is the most liquid assets. Real estate is illiquid because it takes a long time for a real estate asset (e.g a house) to be sold and proceeds converted to cash.
Liquid assets earn less returns when compared with assets that are less liquid. This is because illiquid assets earn an illiquidity premium. An illiquidity premium compensates holders for holding an illiquid asset.
Money in a piggy bank is already in cash or coins and there is no need to convert it to cash again. Also, money in a piggybank is more accessible than the other options.
To learn more about liquidity, please check: brainly.com/question/15691477
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Explanation:
I mean, everybody deserves to have an achievement plan. So why not make one from it?