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3 years ago

The cost of preferred stock

Business

1 answer:

Ghella [55]3 years ago

5 0

Answer:

Dividends are fixed ⇒ Debt

Preferred dividends are fixed much like the interest payments made on debt which makes this a characteristic of debt.

Usually have no specified maturity date ⇒ Equity

Equity does not have an expiration or maturity date and preferred shares share this same characteristic.

Cost of preferred stock.

The value of a Preferred stock is calculated by the formula:

Price = Dividend / Cost of preferred stock

97.95 = 11 / Cp

97.95 * Cp = 11

Cp = 11/ 97.95

= 11.23%

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A middleman is a person who

Alika [10]

Answer:

Explanation:

A middleman is a link between a producer and a consumer. Middlemen includes wholesalers and retailers

Some of the functions of middlemen include

1. They provide information to the producers about consumers' tastes

2. they market producers goods and services

3. Middlemen render financial help to manufacturers.

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3 years ago

The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.

Firdavs [7]

I guess the correct option is D.

The primary purpose of patents and copyrights is to encourage the expenditure of funds on research and development to create new products.

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3 years ago

Texas ranks in terms of state spending per capita and it ranks in terms of how much money it gets from the federal government

Taya2010 [7]

The given statement " Texas ranks in terms of state spending per capita and it ranks in terms of how much money it gets from the federal government " is TRUE

Explanation:

In 2007, the State spending per capita, fiscal 2007, ranked Texas among 50 States in per capita policy (expenditures) revenue.

i. $ 3,831.00B/2007

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Texas has been a low-cost country for a long time, often to the exclusion of the most needed services. Public education as well as health care and human services are the two biggest areas of government spending, collectively accounting for over half of all all-funds and general income budgets. Nonetheless, Texas has a low level of spending per pupil and per patient in the field of health care.

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3 years ago

Roger always purchased insurance for the 10 years he owned an expensive speedboat. Since he never had an accident, the premiums

miv72 [106K]

The answer base on the given scenario would be letter a, Roger would gain benefits as he was protected from a financial loss as this insurance covers him financially as the insurance of which premiums he has paid and were to gain would only make him the person of having to have the benefit as he is the one who has the insurance covered for him, which is entitled to his name and that the benefits and offers would be his gain.

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3 years ago

Alex Karev has taken out a $ loan with an annual rate of percent compounded monthly to pay off hospital bills from his wife Iz

Tom [10]

Answer:

the question is incomplete, so I looked for a similar one:

<em>Alex Karev has taken out a $180,000 loan with an annual rate of 11% compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month?</em>

PVIFA = $180,000 / $3,500 = 51.42857

PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12

51.42857 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ

0.47143 = 1 - 1/(1 + 0.11/12)ⁿ

1/(1 + 0.11/12)ⁿ = 1 - 0.47143 = 0.52857

1 / 0.52857 = (1 + 0.11/12)ⁿ

1.89189 = 1.009167ⁿ

n = log 1.89189 / log 1.009167 = 0.2769 / 0.003963 = 69.87

n = 69.87 months

PVIFA = $180,000 / $4,000 = 45

PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12

45 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ

0.4125 = 1 - 1/(1 + 0.11/12)ⁿ

1/(1 + 0.11/12)ⁿ = 1 - 0.4125 = 0.5875

1 / 0.5875 = (1 + 0.11/12)ⁿ

1.70213 = 1.009167ⁿ

n = log 1.70213 / log 1.009167 = 0.23099 / 0.003963 = 58.29

n = 58.29 months

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2 years ago