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%
Answer:
$4,038
Explanation:
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
Present Value = Future Value x (1/ ( 1 + interest rate ) ^ number of periods)
Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)
Present Value = 6,000 x 0.68058
Present Value = $4,038
false: it means you dont have to agree with them but you have to respect their opinion
Answer:
negative consumption externality.
Explanation:
A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
On the other hand, a positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
In this scenario, your neighbor enjoys seeing the grass in his yard grow wild and free, a practice with which you disagree because it poses a danger on the people around as snakes and other poisonous animals may breed or live there.
Hence, this is an example of a negative consumption externality because it's the potential of causing you harm or endangering your life.
