Answer:
price of preferred stock = $465.65
Explanation:
given data
annual dividend = $18
return = 3.2 percent = 0.032
solution
we know prefer stock price is express as
prefer stock price Vp = 
here Vp is value of preference share and d is constant dividend and Kp is rate
so
prefer stock in 6th year will be = 
= $562.50
so that price of preferred stock today = 
price of preferred stock = 
price of preferred stock = $465.65
The real interest rate is;
Real interest rate = nominal interest rate - inflation
<h3>What is inflation?</h3>
The rate at which prices increase over a specific time period is known as inflation. Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.
There are three main causes of inflation:
- demand-pull inflation: Demand-pull inflation, which economists define as "too many dollars chasing too few things," is the increasing pressure on prices that accompanies a scarcity in supply.
- cost-push inflation: When the cost of labor and raw materials rise, the overall price level will rise (inflation).
- built-in inflation: As employees anticipate an increase in compensation when the cost of products and services rises in order to maintain their standard of living, this is known as built-in inflation.
<h3>What is real interest rate?</h3>
A real interest rate reflects the rate at which current things are preferred over future goods over time.
The difference between the nominal interest rate and the inflation rate is used to calculate the real interest rate for an investment.
Real interest rate = nominal interest rate - rate of inflation (expected or actual).
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Answer:
c.Go Green and Save Greenbacks!
Explanation:
This heading is short and straight to the point. It innovatively uses phrases like "Go green" (to urge people to be involved in sustainability efforts), and "save greenbacks" (to save money).
So this heading conveys that when you go into environmentally friendly practices you spend less. Saving the environment in a cost-efficient way.
The net accounts receivable balance is $18,000
Explanation:
Given,
Ending balance of account receivable = $20,000
Bad debts Expenses = $1,000
Ending balance of Noncollectable account = $2,000
Net account Receivable = Ending balance of account receivable - ending balance of noncollectable account.
Net account Receivable = $20,000 - $2,000
= $18,000
Answer: Both assets and liability sides decreases by $1,200.
Explanation:
Given that,
Purchased merchandise on account = $12,500
Merchandise return to supplier = $1,200
All merchandise sold = $18,800 cash
This will results in the:
Decrease in inventory by $1,200 which means that assets decreases by $1,200.
Accounts payable also reduces by $1,200 which means that liability decreases by $1,200.
Hence, both sides of the balance sheet i.e. assets and liability decreases by $1,200.
