Answer:
You should buy more shares
Explanation:
The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.
You own 300 shares of Somner Resources' preferred stock, which currently sells for $39 per share and pays annual dividends of $5.50 per share. If the market's required yield on similar shares 12% is percent, should you sell your shares or buy more?
Solution as mentioned below:
First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.
Value of preferred stock = 5.50 / 12%
Value of preferred stock = $45.83
Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.
Inventory cost is higher than all other options. If there are many small players at the customer stage, each requiring small amount of the product at a time.
Answer:
D- income statement accounts are temporary accounts and do not retain their balances from one period to the next.
Explanation:
quizlet
The sale and purchase of government securities by the Fed would leave reserves unchanged.
<h3>
What is the effect of the purchase and sale of government securities?</h3>
The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.
One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.
Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)
($500 / 0.2) - (500 / 0.2) = 0
To learn more about reserve ratio, please check: brainly.com/question/6831267
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