Answer:
1.97%
Explanation:
The formula to calculate the holding period return is:
HPR=(Income generated+(ending value-initial value)/Initial value)*100
Income generated= $24
Ending value= $884.89
Initial value= $891.26
HPR=(24+(884.89-891.26)/891.26)*100
HPR=(24+(-6.37)/891.26)*100
HPR=(17.63/891.26)*100
HPR=0.0197*100
HPR= 1.97%
According to this, the holding period return (HPR) on the bond as of today is 1.97%.
Answer:
The correct answer is False because preferred dividends don't normally grow.
Explanation:
The preferred stock is an action that gives the holder an extra privilege, usually of an economic nature, with respect to what we commonly know as ordinary shares.
For example, the holder of a preferred stock has a higher hierarchy in the collection of dividends or in the distribution of the remaining equity in the event of bankruptcy by the company.
As with ordinary shareholders, preferred shares do not expire, but however, unlike ordinary shares, preferred shares do not legitimize their right to vote at ordinary or extraordinary shareholders meetings, nor do they assign some participation in the capital of the company. Likewise, the profitability of preferred shares is also not guaranteed, because it is linked to obtaining benefits.
Answer:
c. 11.1%
Explanation:
The formula to compute the implied rate is shown below:
Future Value = Present Value × (1 + Interest rate)
$20,000 = $18,000 × (1 + Interest rate)
$20,000 = $18,000 × (1 + Interest rate)
So, (1 + Interest rate) = 1.1111
So, the interest rate is
= 1.1111 - 1
= 0.1111 or 11.1%
We simply applied the above formula to determine the implied rate on this loan
Explanation:
a good strategic plan cannot protect and grow firms resouces
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