Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that: Country A will grow the fastest.
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Explanation:</u></h3>
Gross domestic product measure helps in determining the economic growth of a country for a given time period. Real GDP refers to the measure that shows the values of all the goods and services that are produced in a country for a specific time period and the measure will be a inflation adjusted one.
Thus real GDP can also be referred as constant price or inflation adjusted GDP. In the given example, the real GDP per person for three countries A,B and C are given whose value is $10,000, $20,000 and $30,000 respectively. There is a similar rate at which the savings gets increased. Other things are said to be equal and hence the result will be Country A will grow the fastest. This is because the real GDP is lesser when compared with other two countries.
Answer:
Preferred Stock = $60,000 and $3.00
Common Stock = $100,000 and $1.25
Explanation:
Dividends
Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.
Preferred Stock dividend = 20,000 x $50 x 6% = $60,000
Common Stock dividend = $160,000 - $60,000 = $100,000
Dividends per share
Preferred Stock dividend = $60,000 ÷ 20,000 shares = $3.00
Common Stock dividend = $100,000 ÷ 80,000 shares = $1.25
Answer:
true
Explanation:
Junk bonds can be defined as the bonds that require a higher default risk than most corporate and government issued bonds. A bond is indeed a debt or promise to pay interest payments to investors in return for purchasing the bond and the return of the invested principal.
Junk bonds depict debt issued by financially struggling companies with a significant risk to defaulting or failing to pay even their own monthly payments or reimbursing the principal to lenders. Thus, from the above we can conclude that the given statement is true.