When a company has issues bonds, preferred stock, and common stock to investors what investor gets paid last is explained in the following
Explanation:
- In a buyout, the purchaser is buying all of the common shares of stock for a price it believes to be the fair value of the company as a whole. ... Many preferred shares carry convertibility options, where they can trigger a conversion from preferred into common stock.
- Preferred stock is a type of ownership that receives greater demand on a company's profits and assets than common stock. While preferred shareholders do not typically have a right to vote in the company, they do hold the benefit of being paid dividends before common shareholders.
- Most shareholders are attracted to preferred stock because it offers consistent dividend payments without the long maturity dates of bonds or the market fluctuation of common stocks.
- The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.
- Preferred stocks are not debt issues, so they do not represent loans that are eventually paid back at maturity. ... The yield generated by a preferred stock's dividend payments becomes more attractive as interest rates fall, which causes investors to demand more of the stock and bid up its market value.
The answer to this question is:
<span>All of the following are intangible assets except??
</span><span>D-"Accounts Receivable."
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Answer:
7.3%
Explanation:
Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula
As per given data
n= 18 years
Par value = $1,000
Price = $965
YTM = 7.7%
As we have the value of the bond we need to calculate the coupon payment using following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
$965 = C x [ ( 1 - ( 1 + 7.7% )^-18 ) / 7.7% ] + [ $1,000 / ( 1 + 7.7% )^18 ]
$965 = C x 9.57 + $263.10
$965 - 263.10 = C x 9.57
701.9 = C x 9.57
C = 701.9 / 9.57 = 73.34
Coupon rate = 73.34 / 1000 = 7.334%
Answer:
The present value of the cash payment is $20
Explanation:
The present value of cash payment receivable by Mr Lane in one year's time is the today's equivalent amount of the dividend of $18 as well as the liquidation value of $3.
The present value is the total cash inflows multiplied by the discount factor
discount factor=1/(1+r)^n
where is the rate of time preference of 5%'
n is 1 i.e in one year's time
total cash inflows=$18+$3=$21
discount factor =1/(1+5%)^1=0.95238
present value of cash payment=0.95238*$21=$20
