Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
Answer: Belinda sends an email to Equador offering to sell her entire entertainment set to him for $2,500. Equador responds that the price seems a bit high and offers to buy the entertainment set for $2,000. Equador’s response is considered a <u>counteroffer.</u>
Explanation: A counter offer is an offer that improves or modifies another already submitted by the competition or the contrary in a negotiation.
In this case, Belinda makes an offer to Equador and since Equador seems like a very high price, it responds with a Counter Offer by modifying the initial offer in its price.
The answer is Regional economic integration
Answer:
When interest rates decrease, It causes a ripple effect in the economy that stimulates growth and wealth creation. In the long run, it might cause inflation.
Explanation:
- If interest rates decrease, consumption increases because there is more disposable income available in each household.
- If interest rates decrease, investment increases since the cost of borrowing is cheaper.
- If interest rates decrease, government spending decreases .
- If interest rates decrease, the value of net exports increase because the economy us stimulated as a result of a business boom facilitated by low and affordable loans.
Answer:
Explanation:
a) investors wil receive 6% x ( 1-0.35)
= 3.9% risk free debt after tax.
After tax return from risk free preferred stock earnings must be equal.
to evaluate the cost of capital fro preferred stock = 3.9%/(1-0.15)
= 4.59%
b) the after-tax debt cost of capital = 6% x (1- 0.40)
= 3.60%.
therefore, 3.60% is cheaper than the 4.59% preffered stoch cost per capital
c) r* = 1 - [{(1 - 0.40)(1 - 0.15)} / (1 - 0.35)] = 1 - 0.7846 = 0.2154, or 21.54%
Hence, 4.59% x (1 - 0.2154) = 3.60%
