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tester [92]
3 years ago
14

Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividen

d of $7.00 a share. What is the company's cost of preferred stock, rp
Business
1 answer:
Snezhnost [94]3 years ago
3 0

Answer:

11.96%

Explanation:

Calculation for Torch Industries company's cost of preferred stock,

Using this formula

Cost of preferred stock = Dividend / Stock Price * 100

Where:

Dividend =$7.00

Stock Price = $58,50

Hence,

= $7 / $58.50 * 100

= 11.96%

Therefore the company's cost of preferred stock will be 11.96%

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International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower t
Elden [556K]

Answer:

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.

Explanation:

A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.

Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.

The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence  there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.

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4 years ago
The Ad Council of America creates an ad that shows teens in a car having fun while driving in the city. They are enjoying music
valentinak56 [21]

Answer:The idea of the Ad - do not text while driving

Explanation:

Texting and driving is dangerous – that is a fact. Americans are highly aware of and concerned about the issue. More than nine in ten Americans believe sending (94%) and reading (91%) texts while driving is dangerous or very dangerous. There have been many efforts to educate and convey the potential consequences of texting and driving using scare tactics or preachy messaging. And, while research shows that people are convinced that the behavior is dangerous, they are still doing it. In order to address the disconnect between awareness and behavior, the Texting and Driving Prevention campaign aims to go beyond showing people the potential crashes and gruesome end results.Texting while driving, also called texting and driving, is the act of composing, sending, reading text messages, email, or making similar use of the web on a mobile phone while operating a motor vehicle. Texting while driving is considered extremely dangerous by many people, including authorities, and in some places have either been outlawed or restricted. As a form of distracted driving, texting while driving significantly increases the chances that a driver will be involved in a motor vehicle accident.

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3 years ago
Five firms are currently producing and selling in a market. When two more firms enter the market, economists expect that the equ
Vilka [71]

Answer:

Decrease, Increase

Explanation:

Equilibrium price is that price in the market, where the quantity of the goods supplied or the service offered is equal to the quantity of the goods demanded. At this point the supply as well as the demand curves in the market intersect.

So, when 2 firms will be entering the market, the economist expect that the equilibrium price will decrease or fall and fall in the price leads to increase in the quantity, so the equilibrium quantity will increase.

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3 years ago
After a customer has purchased a refrigerator, he was offered free delivery, installation, financing, and warranty. this is know
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After a customer has purchased a refrigerator, he is offered free delivery, installation, financing, and warranty, this is known as the “Augmented Product”.

<h3>What is an Augmented product?</h3>

An augmented product contains extra features or services added by its seller to distinguish it from comparable goods offered by rival businesses. A product can be improved by including additional, non-physically present features or advantages.

Free delivery and in-home service installation are two aspects that are used to build better items. Cosmetics businesses routinely offer free makeovers and travel-size samples to market their goods.

<h3>What is a product?</h3>

A product is an item that can be offered for sale.

<h3>Who is the customer?</h3>

A customer buys the product to consume.

To know more about Augmented Product visit:

brainly.com/question/28017400

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Answer:

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