Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improve
1 answer:
You might be interested in
Answer:
effective annual yield = 6.09
Explanation:
given data
rate r = 6%
compounded semi-annually
solution
we get here effective annual yield that is express as
effective annual yield = - 1 ..................1
here n is 2 for semi-annually
put here value and we get
effective annual yield = - 1
effective annual yield = 0.0609
effective annual yield = 6.09 %
effective annual yield = 6.09
Answer:
= 3.72%
Explanation:
We know,
The price of a preferred stock is calculated by dividing the dividends from preferred stock by the required rate of return of preference share. Assuming the stock is growing constantly.
The formula to calculate -
Price of preferred stock = Dividend from preferred stock ÷ required rate of return
Given,
Dividend from preferred stock = $3.35
Price of preferred stock = $90
Therefore,
$90 = $3.35 ÷
or, = $3.35 ÷ $90
or, = 0.0372
Hence, = 3.72%
The required return = 3.72%