A.
Indirect finance means that there must be a financial intermediary, however, shares are bought and sold between the buyer and seller, therefore this is direct finance.
Answer:
Preferred Stock = $60,000 and $3.00
Common Stock = $100,000 and $1.25
Explanation:
Dividends
Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.
Preferred Stock dividend = 20,000 x $50 x 6% = $60,000
Common Stock dividend = $160,000 - $60,000 = $100,000
Dividends per share
Preferred Stock dividend = $60,000 ÷ 20,000 shares = $3.00
Common Stock dividend = $100,000 ÷ 80,000 shares = $1.25
Answer:
The Question has been offered as to pick the least of the terms less expensive than lifetime alternative, so it is smarter to continue with the choices given in the Question.
For 14 years:
Year Cash Flow PVF = 7.6% Cash Flow
0 $800 1 $800
1 - 13 $800 8.0807 $6464.56
<u>Total $7264.56
</u>
For 13 years
:
Year Cash Flow PVF = 7.6% Cash Flow
0 $800 1 $800
1 - 12 $800 7.6948 $6155.83
<u>Total $6955.835
</u>
<u>
</u>For 19 years
Year Cash Flow PVF = 7.6% Cash Flow
0 $800 1 $800
1 - 18 $800 9.6377 $7710.16
<u>Total $8510.16
</u>
<u>
</u>
For the long time alternative it is realize that not doable choice to go with 19 years so obviously past 19 years likewise not possible so for a long time not comprehended.
from the over the least is accessible in 13 years so lloyd needs to go for a long time.
Answer:
$25.86.
Explanation:
To address this problem we first calculate the present value of all dividend received at time t = 20, then we discount that sum to time t = 0 (now).
The cashflow pattern of this preferred stock is similar to perpetuty.
Stock value at time t = 20 = Dividend/Required rate of return = 20/10.5% = 190.48
Stock value at time t = 0 = (Stock value at time t = 20)/(1 + Required rate of return)^20 = 190.48/(1 + 10.5%)^20 = 25.86.
Answer:
The medicine should be taken with food
Explanation:
Drugs work effectively when taken with food
