Surpluses push the price down toward the equilibrium and shortages raise the price to the equilibrium
Answer: E) price-earnings ratio will be 14.26 ex-dividend.
Explanation:
Stock prices generally decrease in price by the price of the dividend on ex-dividend date.
This means that this stock will reduce to:
= 31.17 - 1.09
= $30.08
Price to Earnings ratio = Stock price/ Earnings per share
= 30.08/2.11
= $14.26
<em>Option E is correct. </em>
Answer:
Life insurance.
Explanation:
Life insurance is defined as a contract that is raised between an individual and an insurance company that guarantees the payment of a particular amount tonthe individual's beneficiary in the case of death. The insurance policy requires premium to be paid on agreed intervals.
Stan and Heidi are both having caterers in business, and death of one of them will lead to decreased income.
To guard against this the couple can purchase a life insurance that will pay beneficiary a guaranteed sum in case of death of one of the partners.
This will ensure there is no sudden drop in their income.
Answer: $7.50
Explanation:
Given that,
Total value = $950 million
Accounts payable = $100 million
Notes payable = $100 million
Long-term debt = $200 million
common equity = $200 million
shares of common stock = 100 million
Value of equity = Value of firm - Value of preferred stock - Value of long term debt.
= $950 million - 0 - $200 million
= $750 million


= $7.50