Answer:
PV = $78.46153 rounded off to $78.46
Explanation:
A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,
PV = Cash flow / r
Where,
- r is the required rate of return
PV = 5.1 / 0.065
PV = $78.46153 rounded off to $78.46
Answer:
B. The physical count of securities and cash
Explanation:
An objective is the business's goal and in order to see that the quantity would need to be in a physical sense to see growth over time.
Answer:
B) the issuance of bonds.
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
As such, the sale of additional shares of stock, net income and declaration of dividend are typical reasons for changes in shareholder's equity however, the issuance of bonds is a liability (usually non-current).
The captains of industry like J.P. Morgan<span> respond to signs that the stock market was about to </span><span>collapse by meeting each other and trying to save the market. J.P. Morgan invited the leading bankers and financial experts to his home where they set up a shop in his library. They labored to channel money from strong institutions to weaker institutions to keep them afloat. Their efforts improved the condition of the economy over several weeks.</span>
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