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AURORKA [14]
3 years ago
11

You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per s

hare. If the​ market's required yield on similar shares is ​percent, should you sell your shares or buy​ more?
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

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Which of the following can impact your credit score
stealth61 [152]

Answer: B. your Debt to Credit ratio

Explanation:

Your debt to credit ratio is important to lenders because it shows whether you spend wisely when given debt.

Debt to credit is measured as the percentage of debt you have given your credit limit. If for instance you have a credit card limit of $50,000 and have debt of $10,000, your debt to credit ratio is:

= 10,000/50,000 * 100

= 20%

Generally the lower this ratio, the better the contribution to your credit score.

7 0
3 years ago
Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the world, whether it's mango-and-orange
zvonat [6]

Answer:

Product adaptation

Explanation:

Product adaptation is when an existing product is changed or modified to suit customers need in a foreign market . The aim is to satisfy customers want all around the world where the products are exported to.

There are various reasons why products may be adapted, one of which is changing the taste of a product to meet the desire of customers who are based in other countries or around the world. It may also involve either changing the brand, colour etc, just to meet customers demand all around the world.

Other reason why a product may be adapted is to comply with local laws where the products are exported to.

7 0
3 years ago
AN The Mixing Department manager of Malone Company is able to control
slamgirl [31]

Responsibility report for the financial period of the overhead costs incurred will have a negative shortfall and a difference of $4125 for the controllable costs.

<h3>What are overhead costs?</h3>

Overhead costs are such costs which are continuously in an organization while operating in the regular course of business. The overhead costs are estimated before they are actually incurred for efficiency of cost allocation.

The responsibility report for the overhead costs incurred by Malone Company for the given period are attached with an image for better reference.

Hence, it can be stated that the controllable costs' responsibility report shows as overhead costs of negative difference of $4125.

Learn more about overhead costs here:

brainly.com/question/14811739

#SPJ1

4 0
2 years ago
Diego transfers real estate with an adjusted basis of $648,400 and fair market value of $907,760 to a newly formed corporation i
Monica [59]

Answer:

123,196

Explanation:

Recognized gain

= Liability on transferred real estate - Adjusted basis

= 771,596 - 648,400

= 123,196

Basis = 0

3 0
3 years ago
Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
Svetlanka [38]

Answer:

D) all of the above

Explanation:

First find the present value for each alternative  using PV of perpetual cashflow formula;

PV = CF / rate

CF = 50

If rate= 5%;

PV = 50/0.05 = $1,000

If rate = 2%;

PV = 50/0.02 = $2,500

With these two calculations, we see that;

-the bond price increased by $1,500

-you could sell this bond at a capital gain, meaning you can sell it a higher price that what you bought it for.

-at an interest rate of 2%, the speculative demand for money would increase

Hence , all these choices are correct!

5 0
3 years ago
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