Answer: $25
Explanation:
A Preferred Stock is a special stock that entities the holder to a fixed dividend. It also gives the holder priority of stock payment over common stock holders.
The Value of a preferred stock is worked out with the following formula,
Value of the preferred stock = Dividend / Required Return
So,
Value of Preferred Stock
= 4/0.16
= $25
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Answer:
d
Explanation:
Nominal interest rate = real interest rate + inflation rate
6 - 2 = 4%
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
if inflation declined by 2 percent, it means purchasing power increased by 2%.
Total increase in purchasing power = 6 + 2 = 8
Answer:
All of the above except: Don't tell people your dog's name
Explanation:
Hope this helps!
Answer:
a bank
Explanation:
that is where you open a savings account
Considering that nominal interest rate is 8% and the inflation rate is 3%, then, real interest rate will equals 3%.
Given Information
Nominal interest rate = 8%
Inflation rate = 3 percent
Real interest rate = Nominal interest rate - Inflation rate
Real interest rate = 8% - 3%
Real interest rate = 5%.
Hence, considering that nominal interest rate is 8% and the inflation rate is 3%, then, real interest rate will equals 3%.
Read more about Real interest rate
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