Answer:
7.37%
Explanation:
First of we calculate Future value of coupon payments:
Annual Payment= 65
Interest = 6%
Time = 5 years
Present value = 0
Future value = 65 + 65 * (1.06) + 65 * (1.06)^2 + 65 * (1.06)^3 + 65 * (1.06)^4
Future value = 366.41
Now after 5 years the interest rate will become 7%, we will calculate present value of bond after 5 years:
Annual Payment= 65
Interest = 7%
Time = 15 years
Present value = 65/ (1.07) + 65/ (1.07)^2 + .......+ 65/(1.07)^15 + 1000/ (1.07)^15
Present value = 954.46
Total future value = 954.46 + 366.41 = 1,320.87
($925.50) * (1 + r)^5 = $1,320.87
r = 7.37%
Answer:
The amount of dividend received by common stockholders in 2017 = $7500
Explanation:
The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.
The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500
In 2016 dividend of 22500 is declared and paid.
Out of this 22500, 12500 relates to prefernece dividend for 2015.
The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.
In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.
The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500
Answer:
you can use that to do money and deviding other things
Explanation:
Answer:
5.47%
Explanation:
Fisher equation:
1+ real interest rate = (1+nominal interest rate) / (1+Inflation rate)
1+0.03 = (1 + Nominal interest rate) / (1+0.024)
--> nominal interest rate = 5.47%
Answer:
Option D Greater than the competition a member of a strategic group and companies outside that strategic group.
Explanation:
The reason is that a strategic group focuses on a single market segment which means that if one company in the group is selling footballs of quality B then all of the members of the strategic group are also selling the football of quality B. And the firms who are in the other strategic group are selling other than quality B footballs. Because all the products in the strategic group are 99% similar to the competitor's products, the competition within the strategic group is more intense than the competition outside of that strategic group.
