Motivation. Theory X<span> assumes that people dislike work; they want to avoid it and do not want to take responsibility.</span>Theory<span> Y assumes that people are self-motivated, and thrive on responsibility.</span>
Answer:
Dividends are fixed. ⇒ Consistent with Debt
Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.
Usually has no specified maturity date ⇒ Consistent with Equity.
Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.
Cost of preferred stock.
Preferred stock is like a perpetuity. The cost of preferred stock is therefore:
= Constant dividend / Price of stock
= 13 / 130.45
= 9.97%
= 10%
Its citizens, and government.
People either get hired to balance out how much a company is paying their employees, or the price of their priduuct increases to balance out how much money their employees are getting paid
The perpetual equivalent annual cost is - $35013
<h3 /><h3>The perpetual annual cost calculation</h3>
interest i = 10%
Period = n = 7 years
Formula
A/F = i/(1+i)^n-1
= 0.1/(1+0.1)^7-1
= 0.1054
The perpetual annual cost
= -250000*0.1-95000(0.1054)
= -25000-10013
= - 35013
Therefore the perpetual equivalent annual cost is $35013
