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tatiyna
2 years ago
15

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, an

d a current market price of (a) $62, (b) $81, (c) $97, and (d) $136
Business
1 answer:
ehidna [41]2 years ago
4 0

Answer and Explanation:

The computation of the risk premium is shown below:-

Rate of return = Dividend ÷ Current market price of preferred stock

The dividend should be

= $100 × 8%

= $8

a Rate of return = $8 ÷ $62

= 12.90%

b. Rate of return = $8 ÷ $81

= 9.88%

c. Rate of return = $8 ÷ $97

= 8.25%

d. Rate of return = $8 ÷ $136

= 5.88%

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HERE IS/ARE THE FULL QUESTION(S):

The small island nation of Kaboom is a simple economy with no​ government, no​ taxes, and no imports or exports. Kaboomers​ (citizens of​ Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption​ (independent of​ Y) is​ zero, so consumption​ (C) is MPC times Upper YMPC×Y.

The following data are estimates for the island of​ Kaboom:

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bullet• Planned investment spending ​(I)​:225 million Kaboomian dollars

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3 years ago
Bob, an accountant of xyz, drives his own car to the bank to make a deposit for xyz. bob has an at-fault accident. if xyz carrie
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Prior to the early twentieth​ century, a worker who was injured on the job could collect damages only by suing his employer. To
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Wages would fall due to an increase in labor costs.

When the workers compensation laws were not there, the employers only had to worry about one labor cost, that of paying their employees. With the introduction of worker's compensation, they then had to get insurance for their employees as well.

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