False, because once an item is new they place it at the highest starting price then it gradually decreases over time
Answer:
I don't see an attachment
Explanation:
You should make another question with the picture
Answer:
6.2%
Explanation:
The instrinsic value of the company's preferred stock can be determined as the sum of all discounted dividends. The cashflow pattern of preferred shares is similiar to perpetuity.
Preferred share price = CF/(1 + Cost of preferred stock) + CF/(1 + Cost of preferred stock)^2 + ... + CF/(1 + Cost of preferred stock)^n, or reduced form as
= CF/Cost of preferred stock
Putting all the number together, we get:
96 = 5.95/Cost of preferred stock, or Cost of preferred stock = 6.2%
Answer:
C) prohibited as a likely exaggeration
Explanation:
The statement being made by the adviser is prohibited as a likely exaggeration. An investment adviser has the moral obligation to advise the client so that they may increase their wealth safely through informed decisions. This does not include exaggerated price predictions. Regardless of past performance, an adviser cannot state that an asset will double in the near future or in the future in general because no one can know what will happen in the future and making such a prediction can be dangerous for the client.