Answer:
$74.61
Explanation:
The computation of the value of preferred stock is shown below:
Value of preferred stock = Annual dividend ÷ return of preferred stock per share
= 10.40% × 100 ÷ 13.94%
= $74.61
Simply we divide the annual dividend by the value of preferred stock per share so that the correct value of preferred stock can be computed
Answer:
Credit life Insurance
Explanation:
The scenario describes Credit life insurance
This is a form of insurance policy that that is designed to pay off the balance on a policy holder's outstanding loan in case of death. It is designed for the protection of lender and heirs who are co signers from loss in case of the death of the borrower.
The insurance is liable to the balance on the loan as at the time of the death of the borrower.
Answer:
The price of subscription = 6.5
Explanation:
ex rights price = (current price × shares outstanding + amount raised) ÷ (current shares + amount raised/subscription price)
78 = (100×25+50) ÷ (25+50/Subscription price)
The price of subscription = 6.5
Answer:
The correct answer is housing.
Explanation:
A family spends 35 percent of its income on housing, 20 percent on travel-related expenses, 10 percent on utilities, 25 percent on health care, and 5 percent on miscellaneous items.
The item which has the largest share in the budget will be most responsive to change in the price. In other words, we can say that the item that has the largest share in the budget will be most price elastic.
This is because a change in the price of such a product will cause a significant impact on the consumer's budget.
Here, housing has the highest share i.e. 35% in the budget so it will be most price elastic.
Answer:
The operating cash flow in this transaction is zero
Explanation:
Please see attachment.
