Answer:
a.
Explanation:
Correct option is > a. If the marginal investor becomes more risk averse, the required return on Stock B will increase by more than the required return on Stock A.
Reason: Required rate Stock B will increase so that to attract new investors for stock B and make returns more rational against associated risk.
Based on the information given the annual dividend on the preferred stock is : $4,200.
Using this formula
Annual dividend=Number of shares× Par value× Shares Percentage
Where:
Number of shares=1050 shares
Par value=$100 par value
Shares Percentage=4% or 0.04
Let plug in the formula
Annual dividend=1050shares× $100×0.04
Annual dividend=$4,200
Inconclusion the annual dividend on the preferred stock is : $4,200.
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Answer: Continue operating like State-owned enterprises
Explanation:
Newly privatized would imply that they were once government owned which means that they were probably monopolies. These new companies are protected from foreign competition which means that their goods will be the dominant ones in the economy.
They will therefore keep operating as though they are state-owned companies because their goods will be dominant making them monopolies which is what government owned companies usually are.
Confidentiality.
Confidentiality means keeping things private/secret. It would be difficult to maintain this level of privacy if there is a lot of foot traffic.