Answer:

Explanation:
Since the four<em>-cash-flow stream</em> is <em>uneven</em>, the manual calculation involves the calculation of four separate present values which you have to add.
The <em>cash flows </em>are:
The required rate of return is r = 10% = 0.10
The formula that you must use is:

Where <em>PV </em>is the <em>present value</em>; CF₁, CF₂, CF₃, CF₄ are the cash flows of the years 1, 2, 3, and 4 respectively, and i is the annual return.
Substituting:


Answer:
Explanation:
return on preferred stock (rp) = Dividend/ Current price
rate of return = 5.5% or 0.055 as a decimal
Dividend amount = dividend rate * par value ;
Dividend amount = 4.5% * 1000 = $45
Current price = ?
Next, plug the numbers to the formula above to find Price;
0.055 = 45/ Price
0.055Price = 45
Divide both sides by 0.055;
Price = 45/ 0.055
Price = $818.18
Answer:
a decrease in market output and an increase in the price of the product.
Explanation: