Hi Gabflips1902,
<span>Preferred stock is characterized by quasiminus−debt nature.
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Answer:
The greater the discrepancy between a consumer's needy state and the desired state, the greater <u>the consumer's need recognition will be.</u>
Explanation:
As there is a greater discrepancy between the two states, there would be stronger drive to satisfy the need
Answer:C. Smaller stock have lower volatility than larger stock.
Explanation:
Volatility refers to the prones of a stock price to changes in market conditions. The higher the impact of changes in market conditions on a stock the higher the volatility level and the lower the impact of changes in market conditions on a stock price the lower the volatility. However the size of a stock does not necessarily determine the level of his volatility, a
stock may be small but still have a large volatility level and stock may be large and have low volatility level.
Answer:
Also known as the balance sheet equation, the accounting equation formula is Assets = Liabilities + Equity. ... In other words, all uses of capital (assets) are equal to all sources of capital (debt: liabilities and equity).
Answer:
After tax cost of debt is 6.82%
Explanation:
Currently the yield to maturity is the pre-tax cost of debt for Hype company, however the after tax cost of debt considers that the bonds are tax deductible , its actual is less than the pre-tax cost of debt , hence the after-tax cost of debt is shown below
After tax cost of debt=yield to maturity *(1-tax)
after tax cost of debt=11%*(1-0.38)
after tax cost of debt=11%*0.62
after tax cost of debt =6.82%
This confirms that cost of debt is usually lower than cost of equity , where shareholders would want an extra premium to compensate them for the increased risk taken by investing in the business.
