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Rudik [331]
3 years ago
6

When valuing a preferred stock, the type of security that we treat the preferred stock like, for valuation purposes, is

Business
1 answer:
Luba_88 [7]3 years ago
3 0

Answer:

Perpetuity.

Explanation:

This is explained to be a type of annuity which is seen to be in position of receiving infinite amount of payments periodically. It is also tagged to be a financial instrument that is seen to pay consistently but periodically. In our world today, it is put to be the present value of a stream of cash that goes on, into the future, forever. In as much as cash payments are infinite, it’s possible to calculate their present total value because the value of each payment incrementally decreases with each year to the point that it approximates zero. Research has shown that in a lot of cases, economic analysts are seen to use this calculation to determine the value of stocks that pay fixed dividends, real estate that earns rent and annuity insurance products.

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The gross margin ratio:
yaroslaw [1]

Answer:

The correct order of the question is below:

The gross margin ratio: 1- Is also called the net profit ratio. 2- Indicates the percent of sales revenue remaining after covering the cost of the goods sold. 3- Is also called the profit margin. 4- Is a measure of liquidity and should exceed 2.0 to be acceptable. 5- Should be greater than 1 for merchandising companies.

The answer is 2. Indicates the percent of sales revenue remaining after covering the cost of the goods sold.

Explanation:

Gross profit is the difference between cost of sales and net sales revenue and gross profit margin is calculated by gross profit divided by net sales revenue. It can be expressed as a percentage.

This margin is the first measure of profitability.

Option 1 is wrong. Net profit ratio is the ratio of net profit to sales revenue. Net profit is after all expenses and tax have been deducted from revenue.

Option 4 is wrong. This is not a measure of liquidity. Current ratio and quick ratio are a measure of liquidity.

Option 3 and 5 are wrong

5 0
3 years ago
Which of the following is located at the point where the supply and demand curves intersect?
Karo-lina-s [1.5K]

Answer:

Equilibrium point

Explanation:

The point where supply curve intersects demand curve is known as the equilibrium point. At this point, the price of commodity supplied equals the price of commodity demanded. Also at this point, the quantity of commodity supplied equals quantity demanded for a commodity.

Thus, E = Qd = Qs

6 0
4 years ago
Read 2 more answers
A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren
padilas [110]

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

8 0
3 years ago
A change in the asset turnover ratio from 2.0 to 1.8 would indicate: ____________
dem82 [27]

The decline in the value of the asset turnover ratio indicates an unfavorable trend in using assets to generate sales.

<h3>What is the asset turnover ratio?</h3>

The asset turnover ratio is a financial ratio known as the activity ratio. It measures the efficiency with which a firm carries out its operations. The higher the asset turnover ratio , the more efficient the firm is and the lower the ratio, the less efficient the firm is.

The asset turnover ratio = revenge / average total ratio

To learn more about financial ratios, please check: brainly.com/question/26092288

7 0
3 years ago
What is NOT a major purpose of orientation and socialization? A.. Contribute to the organization's bottom-line goals B. Maximize
Alexxandr [17]

Answer:

B. Maximize the potential for litigation with people who claim to be rejected on a discriminatory basis

Explanation:

Orientation in a new workplace is a term that describes a form of onboarding process which includes general or property related areas of the firm, like company standards and policies, firm culture, and job-specific aspects of responsibilities.

Also, Socialization in this regard is a form of arrangement, introduced to the values, norms, and behaviors that are required in order to be successful in the organization.

Hence, considering the available options, what is not a major purpose of orientation and socialization is option B: Maximize the potential for litigation with people who claim to be rejected on a discriminatory basis

5 0
3 years ago
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