The preferred stock effect is not a notion that can be used to explain abnormally high excess stock returns.
<h3>What is the preferred stock?</h3>
The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the two forms of equity. Preferred investors are entitled to more dividends or asset distributions than common stockholders. The specifics of each preferred stock vary depending on the issuance.
When it comes to dividends, preferred stockholders have a preference over ordinary stockholders, which typically yield more than common shares and might be paid monthly or quarterly. These dividends can be fixed or determined by reference to a benchmark interest rate, such as the London Interbank Offered Rate.
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Answer:
current yield 8.2089552%
YTM = 8.05%
effective annual yield = 4.92%
Explanation:
(A)
current yield = C/P
coupon payment / market price
8.8/107.2 = 0.082089552 = 8.2089552%
(B)
First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.
market price 107.2
face value 100
time = 19
rate 8.8%
C = annual coupon payment 100 x 8.8% = 8.8
You solve this using a financial calculation and get the semiannual rate
YTM/2 = 0.040268160
then multiply by 2 to get the annual YTM
0.040268160 x 2 =
YTM = 0.08053632 = 8.05%
(C)
Effective Annual Yield
where:
Holding period return:
In this case:
coupon payment + redem - investment = net return
8.8 * 19 + 100 - 107.2 = 160
160/107.2 = 1.492537313
Then
EAY = 0.049242509 = 4.9242509%
Answer: A = 9 and firm B = 0.11
Explanation:
Debt to equity ratio = Total Liability/ total equity
Firm A = 18000000 / 2000000
Debt to equity ratio of firm A = 9
Firm B = 2000000 / 18000000
Debt to equity ratio of firm B = 0.11
A(n) KICK OFF meeting is held at the beginning of a project, often after the business case and project charter are completed.
b. kick-off
Answer: Option D
Explanation: In simple words, customer to customer market refers to the exchange of commodities between two consumers. Similarly customer to customer electronic commerce refers to the interaction of two consumers for the purpose of sale and purchase transaction through a third party which has a virtual presence.
In the fourth option, Marty and Lobsang both are individuals and made their transaction on a electronic sight.
Hence the correct option is D.
