Answer:
c) $25
Explanation:
<em>The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return</em>
Price = Constant dividend/ required return
The constant dividend = Dividend rate × par value
Dividend as be given as $5 per share
requited return - 20%
So the price of the stock would be
Price = 5/0.2
= $25
If the balance of an asset increases, coins glide from operations will decrease. If the balance of an asset decreases, cash drift from operations will boom. If the balance of a legal responsibility increases, coins waft from operations will grow.
If the balance of a liability decreases, coins waft from operations will decrease. the lowest line at the assertion is the internet boom (lower) in cash and cash Equivalents. it's determined by using calculating the whole cash inflows and outflows for every one of the three sections in the cash go with the flow assertion.
Four simple rules to bear in mind as you create your coins go with the flow announcement: Transactions that display a boom in property bring about decrease a in cash go with the flow. Transactions that show a lower in belongings result in a boom in coin flow. Transactions that display a boom in liabilities bring about an in increases coins float.
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Answer:
a. Toby is not maximizing his utility
b. Toby should reduce his spending on cashew and increase his spending on peanuts.
Explanation:
a. Is Toby maximizing his total utility from the kinds of nuts? If so, explain how you know.
Toby will maximize his utility when we have:
MUp/Pp = MUc/Pc
Where;
MUp/Pp = Marginal utility of peanut divided by price of peanut = 100/10 = 10
MUc/Pc = Marginal utility of cashew divided by price of cash = 200/25 = 8
From the above, Toby is not maximizing his utility. I am able to know this because MUp/Pp > MUc/Pc (i.e. 10 > 8). An Toby will only maximize his utility when MUp/Pp = MUc/Pc.
b. If not, how should he rearrange his spending?
Since MUp/Pp > MUc/Pc (i.e. 10 > 8), Toby should reduce his spending on cashew in order to increase MUc and increase his spending on peanuts reduce MUp until MUp/Pp = MUc/Pc.
A barrier to entry is any factor that makes it difficult for a new firm to enter a market.