The Solution is attached in form of an excel sheet.
Things that might help:
Year 4 = $ 360000 - 84000 = $ 276000
Dividend per preferred share = Total Preferred dividend for that year / total preferred no of shares.
Cite it. If you find a good research article that helps with your topic and you want to properly include it in your paper, you must use the proper "Citation" which gives credit to the person who wrote it.
The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
BREAKING DOWN 'Scarcity'
When we talk of scarcity within an economic context, it refers to limited resources, not a lack of riches. These resources are the inputs of production: land, labor and capital.
People must make choices between different items because the resources necessary to fulfill their wants are limited. These decisions are made by giving up (trading off) one want to satisfy another.
Answer:
Health Maintenance Organizations or HMOs
How different from the indemnity insurance system?
D. Taking responsibility for both financing and delivering health care services to a defined group of beneficiaries.
Explanation:
HMOs are healthcare maintenance organizations which coordinate the provision of health services and care to registered patients. They provide health insurance services to their patients for a monthly fee. They ensure cost-effectiveness in healthcare delivery through their coordination efforts.
On the other hand, indemnity insurance system involves some contractual agreements in which one party (the insurer or insurance company) guarantees compensation for actual or potential losses or damages sustained by another party (the insured).
Answer:
(a) The effective annual interest rate for a 3-month T-bill selling at $97,270 with par value $100,000 is 11.71%
(b) The effective annual interest rate for a 13% coupon bond selling at par and paying coupons semiannually is 13.42%
Explanation:
(a) A 3-month T-bill selling at $97,270 with par value $100,000
EAR =![[par value /price]^n-1}](https://tex.z-dn.net/?f=%5Bpar%20value%20%2Fprice%5D%5En-1%7D)
n = 3 months or 12/3 = 4 times in a year
= ![[100,000/97,270]^4 - 1](https://tex.z-dn.net/?f=%5B100%2C000%2F97%2C270%5D%5E4%20-%201)
=![[1.028066]^4 -1](https://tex.z-dn.net/?f=%5B1.028066%5D%5E4%20-1)
= 1.1171 - 1
= .1171 or 11.71%
b) EAR(coupon bond) = ![[1+.13/2]^2 -1](https://tex.z-dn.net/?f=%5B1%2B.13%2F2%5D%5E2%20%20-1)
=![[1+.065]^2 -1](https://tex.z-dn.net/?f=%5B1%2B.065%5D%5E2%20-1)
= ![[1.065]^2 -1](https://tex.z-dn.net/?f=%5B1.065%5D%5E2%20-1)
= 1.1342 - 1
= .1342 or 13.42%
