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2 years ago

8

You have just purchased a share of preferred stock for $50.00. The preferred stock pays an annual dividend of $5.00 per share fo

rever. What is the rate of return on your investment?

1 answer:

Masja [62]2 years ago

8 0

Answer:

<em><u>rate = 5.50/50 = 0.11 = 11%</u></em>

I believe it is..

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Suppose a new off-campus university apartment complex could rent its rooms on the open market for $900 a month. If, instead,

asambeis [7]

Answer:

a shortage would arise since quantity demanded would exceed the quantity supplied

Explanation:

The law of demand states an inverse relationship between price of a good and it's demand.

In the given case, per month rental for rooms has significantly reduced for students. This would result into an immediate increase in demand for the rooms. Now since, the rooms available are limited in number, a shortage would arise.

Owing to such a shortage, a possibility would arise wherein students who do not require such rooms may avail such rooms at $500 and subsequently let out the rooms to outsiders at anything below $900 thereby earning a profit.

3 0

2 years ago

Suppose NoGro, Inc. has just issued a dividend of $2.90 per share. Subsequent dividends will remain at $2.90 indefinitely. Retur

ira [324]

Answer:

Value of one share will be $19.33

Explanation:

We have given dividend every year = $2.90

Required rate of return = 15 %

We have to find the value of one share

Value of one share will be equal to ratio of dividend per year to the required rate of return

So value of one share $=\frac{2.90}{0.15}=19.13$

So value of one share will be $19.33

5 0

2 years ago

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $35,000, $39,000, $80,000,

storchak [24]

Answer:

The value of the settlement today = $231,897.79

Explanation:

The value of the settlement today is the sum of the present value (PV) of cash inflows discounted at the discount rate of 5.7 %.

Year PV

1 35,000 × 1.057^(-1) = 33112.58

2 39,000× 1.057^(-2) = 34907.16

3. 80,000× 1.057^(-3) = 67743.09

4 120,000 × 1.057^(-4) =96134.94

The Pv of the total cash in flow =33,112.58 + 34,907.17 + 67,743.09 + 96,134.95 = 231,897.79

The value of the settlement today = $231,897.79

7 0

2 years ago

You plan to retire in 30 years and you are investing $250 per month in the BMO Large-Cap Growth mutual fund. The fund has an ave

mr Goodwill [35]

Accumulated Balance is given by :

$A=P\dfrac{(1+i)^n-1}{i}\times (1+i)$

Here,

n = time period = 30×12 = 360.

$i=\dfrac{13.45}{100}\times \dfrac{1}{12}=0.0112$

P = principal price = $250.

Putting all given values in above equation, we get :

$A=250\times \dfrac{(1+0.0112)^{360}-1}{0.0112}\times (1+0.0112)\\\\A=\$1221659.48$

Hence, this is the required solution.

6 0

2 years ago

True or false: The many legal barriers in place around the world makes it difficult to buy securities from foreign companies.

Margarita [4]

Answer:

false

Explanation:

thanks to expanded communications and the relaxation of many legal barriers, investors can buy securities from companies anywhere in the world.

6 0

1 year ago