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Temka [501]
3 years ago
7

If the inflation rate was 3.00% and the nominal interest rate was 8.00% over the last year, what was the real rate of interest o

ver the last year?
Business
1 answer:
Alex Ar [27]3 years ago
3 0
The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%
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The outstanding capital stock of Flint Corporation consists of 1,900 shares of $100 par value, 5% preferred, and 5,200 shares of
bezimeni [28]

Answer:

(a) Preferred dividend = $9,500; and Common dividend = $73,500.

(b) Preferred dividend = $28,500; and Common dividend = $54,500.

(c) Total preferred dividend = $46,022; andTotal common dividend = $36,978

Explanation:

(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

This implies preferred shareholders are entitled only to this year's dividend. Therefore, we have:

Preferred dividend = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% = $9,500

Common dividend = Retained earnings - Preferred dividend = $83,000 - $9,500 = $73,500

(b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

This implies preferred shareholders are entitled to the previous 2 years and this year's dividends making 3 years. Therefore, we have:

Preferred dividend = Number of preferred shares * Preferred share par value * Preferred dividend percentage = 1,900 * $100 * 5% * 3 = $28,500

Common dividend = Retained earnings - Preferred dividend = $83,000 - $28,500 = $54,500

(c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

First-Preferred dividend for 2 years = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% * 2 = $19,000

Second-Preferred dividend for this year = Number of preferred shares * Preferred share par value * Dividend percentage = 1,900 * $100 * 5% = $9,500

Third-Common dividend = Number of common shares * Common share per value * Preferred dividend percentage = 5,200 * $50 * 5% = $13,000

Remaining payout = Retained earnings - First-Preferred dividend for 2 years - Second-Preferred dividend for this year - Third-Common dividend = $83,000 - $19,000 - $9,500 - $13,000 = $41,500

Fourth participating payout as preferred dividend = Remaining payout * (Value of preferred shares / (Value of preferred share + Value of preferred share common shares)) = $41,500 * ((1,900 * $100) / ((1,900 * $100) + (5,200 * $50))) = $17,522

Fifth participating payout as common dividend = Remaining payout * (Value of common shares / (Value of preferred share + Value of preferred share common shares)) = $41,500 * ((5,200 * $50) / ((1,900 * $100) + (5,200 * $50))) = $23,978

Total preferred dividend = First-Preferred dividend for 2 years + Second-Preferred dividend for this year + Fourth participating payout as preferred dividend = $19,000 + $9,500 + $17,522 = $46,022

Total common dividend = Third-Common dividend + Fifth participating payout as common dividend = $13,000 + $23,978 = $36,978

8 0
3 years ago
regarding open-end and closed-end investment companies, all of the following are true except a) both may be either diversified o
zimovet [89]

The false statement is both offer an unlimited number of shares in a continuous public offering. (option c)

<h3>What are open-end and closed-end investment companies?</h3>

Open-end investment companies are companies that allow investors invest in their company continuously through the purchase of their shares. On the other hand, closed-end investment companies close their company to new investors

An advantage of open-end investment companies is they are highly liquid. A disadvantage of open-end investment companies is the company is vulnerable from large inflows and outflow of investments.

An advantage of closed-end investment companies is they do not incur charges with regards to the redemption activities of investors. A disadvantage of closed-end investment companies is that investors cannot withdraw their funds until maturity.

To learn more about open-end investment companies, please check: brainly.com/question/20350725

#SPJ1

4 0
1 year ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

  • bank A = $1,000 x 10% = $100
  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

5 0
3 years ago
The slogan of Nature's Source Products is "Loving the Planet." This is more than just an advertising message. The company hires
mylen [45]

Answer: A. Brand alignment

Explanation:

Brand alignment simply means when a company ensures that the brand's promise is being uphold through its marketing assets and the way the company interacts with the customers.

Brand alignment is a way of making sure that the brand's promise are delivered and met. Since the slogan of Nature's Source Products is "Loving the Planet." and the company employs people who are committed to sustainability and enjoyment of nature, it implies that the company is using brand alignment.

3 0
2 years ago
what is nbetter fender gibson or danelectro guitars. (in your opinion). I ALREADY HAVE MINE DANELECTRO ALL THE WAY.
Nadusha1986 [10]

Answer:

Danelectro Guitars

Explanation:

They are just cool.

5 0
2 years ago
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