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lisov135 [29]
3 years ago
7

Ten years ago, Stigler Company issued $100 par value preferred stock yielding 6%. The preferred stock is now selling for $102 pe

r share. What is the approximate current yield or cost of the preferred stock
Business
1 answer:
Alik [6]3 years ago
4 0

Answer:

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

Explanation:

A current yield refers to the annual return that a security provides based on the interest or dividend payments it makes expressed as a percentage of it current price. Thus, the current yield on preferred stock can be calculated as follow,

Current Yield - Preferred stock = Dividend per year / Current price

Dividend per year =  100 * 0.06 = $6 per year

Current Yield = 6 / 102

Current Yield = 0.05882 or 5.882% rounded off to 5.88%

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Spring is here, and Ginny and her uncle would like to go fishing for the weekend in New Hampshire. Ginny could either go to the
taurus [48]

Answer:rival in consumption and non- excludable

             rival in consumption and excludable

            common resource

            private good

Explanation:

The fish in the river are considered ___rival in consumption __ and __non-excludable ___ whereas the fish in the private pond are _rival in consumption____ and _excludable____. In other words, the fish in the river are an example of ___common resource__, and the fish in the private pond are an example of ___private good__.

3 0
3 years ago
Preferred stock comes in many varieties. ____ preferred stock includes a requirement that past dividends not paid must be paid i
slega [8]

Preferred stock is a type of  investment security which represent ownership in a corporation and is also a debt instrument of the company.

Explanation:

<u>Preferred stock is a type of  investment security which represent ownership in a corporation and is also a debt instrument of the company</u>.It is basically of 5 types

  1. Cumulative
  2. Participating
  3. Convertible
  4. Callable
  5. Adjustable-rate

Preferred stock comes in many varieties.

<u>Cumulative  preferred stock</u> includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid.

<u> Participatory preferred stock </u>includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid.

<u> </u><u>Convertible preferred stock </u>may be turned in for common stock under certain conditions.

<u> Callable </u>preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may<u> buy back </u> the shares under certain conditions.

3 0
3 years ago
On March 1, 2019, Baltimore Corporation had 65,000 shares of common stock outstanding with a par value of $5 per share. On March
andreyandreev [35.5K]

Answer:

retained earnings 175,500

      common stock               48,750

      paid in excess of par   126,750

Explanation:

The diivdends are 15% so we multiply this by the shares outstanding to know the amount of shares:

65,000 x 15% = 9,750 shares

Then we multiply by the market value to know the amount needed:

9,750 x $18 market value = $175,500 stock dividends

The common stock will be 9,750 at par

and the remainder will be paid in excess.

9,750 x 5 = 48,750 CS

175,500 - 48,750 = 126,750

7 0
3 years ago
TMegan receives a phone call from her insurance agent. The agent informs her that although she has homeowner's insurance and car
natulia [17]

Answer:

unsought

Explanation:

Based on the scenario being described within the question it can be said that this is an example of an unsought product. This term refers to a product in which an individual does not care much about or is even interested in purchasing. Which in this situation Megan has not given much thought into life insurance and is not looking to purchase it, but is aware of it due to the insurance agent's call.

6 0
3 years ago
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.
elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

= -$2,600

Now  the Rate of return is

=(-$2,600 ÷ $10,000)

= -26%

hence, the realized return on your investment is -26%

Therefore the correct option is D.

3 0
2 years ago
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