Do you know da way?

DEF Corporation had two issues of ordinary preferred stock with a $100 par value traded on the NYSE. One issue paid $5.56 annual

asambeis [7]

Answer:

5.93%

Explanation:

Cumulative Dividend for both (5.56+5.88) $11.44

share price for both types of preferred stock (95.55+97.5) $193.05

Cost of preferred stocks $11.44/193.05=5.93%

6 0

3 years ago

You have just purchased a car and, to fund the purchase, you borrowed $31,000. If your monthly payments are $493.25 for the next

Free_Kalibri [48]

Answer:

4.56%

Explanation:

The annual percentage rate refers to the rate at which the loan amount is equal to the present value of cash flows

In mathematically

Loan amount = Present value of cash flows

Loan amount = Monthly payment × PVAF (rate, number of years)

$31,000 = $493.25 × PVAF (rate, 72 months)

So,

PVAF (rate, 72 months) = 62.8485

And, the monthly rate is = 0.38%

So, the APR is

= Monthly rate × total number of months in a year

= 0.38% × 12

= 4.56%

The 72 months is

= 6 years × 12 months

= 72 months

7 0

3 years ago

What is the basic purpose of the consumer price index (CPI)? A. to track monthly changes in prices paid by urban consumers B. to

Elina [12.6K]

Answer:

A). to track monthly changes in prices paid by urban consumers.

Explanation:

CPI(Consumer Price Index) is characterized as 'a statistical estimate of the price level of goods and services bought by consumers for consumption purposes by the households.' It primarily aims to estimate the change or swap in the prices of the weighted average price of the common basket(consumption goods, as well as, services that the consumers pay for). It is calculated using the formula;

$CPI_{t} = \frac{C_{t} }{C_{0} } * 100$

where,

$CPI_{t}$ = current Consumer Price Index

$C_{t}$ = Current price basket

$C_{0}$ = Cost of price basket in the base year

It assists in deducing whether the average prices have received a fall or rise and determines inflation or deflation. Thus, <u>option A</u> is the correct answer.

6 0

3 years ago

ackenzie, Inc. has collected the following data. (There are no beginning inventories.) Units produced 600 units Sales price $

Leokris [45]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Units produced= 600

Direct materials $30 per unit

Direct labor $13 per unit

Variable manufacturing overhead $6 per unit

Fixed manufacturing overhead $17,800 per year

Ending inventory= 600 - 400= 200 units

Under absorption costing, the fixed overhead costs get allocated to the product cost. First, we need to calculate the unitary fixed overhead cost:

Unitary fixed overhead= 17,800/600= $29.67

Now, we can determine the total unitary cost:

Unitary cost= direct material + direct labor + total overhead

Unitary cost= 30 + 13 + (6 + 29.67)= $78.67

Ending inventory= 200*78.67= $15,736

7 0

3 years ago

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking

IrinaVladis [17]

Answer:

(B) 40%

Explanation:

↓Q / ΔPrice = Price-elasicity

The price elasticity is the relationship between a change in price with the quantity demanded of a certain good assuming, other factor remains constant.

ΔPrice = (P0 - P1)/((P0 + P1)/2) = (2 - 6)/((2+6)/2) = 4/4 = 1

We know that price elasticity is 0.4

Now we can solve for the change in the quantity demanded:

↓Q/ 1 = 0.4

↓Q = 0.4 x 1 = 0.40 = 40%

7 0

3 years ago