The preferred stock effect is not a notion that can be used to explain abnormally high excess stock returns.
<h3>What is the preferred stock?</h3>
The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the two forms of equity. Preferred investors are entitled to more dividends or asset distributions than common stockholders. The specifics of each preferred stock vary depending on the issuance.
When it comes to dividends, preferred stockholders have a preference over ordinary stockholders, which typically yield more than common shares and might be paid monthly or quarterly. These dividends can be fixed or determined by reference to a benchmark interest rate, such as the London Interbank Offered Rate.
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Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
<u>First, we need to calculate the current contribution margin:</u>
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
<u>Now, the new contribution margin:</u>
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
Answer: Setting interest rates and acting as a lender to banks
Explanation: The Fed or the Federal reserve is a central banking authority in any nation. It is responsible for maintaining the money supply in the economy. Some of the functions performed by the central bank are,
a. Setting interest rates and acting as a lender to banks
b. Print currency notes and coins
c. Setting the repo and the reverse repo rates
d. Clearing inter bank payments.
Therefore, the correct option is Setting interest rates and acting as a lender to banks.
Answer:
An unlimited life spam
Explanation:
If your firm has an existence independent, it will continue to exist indefinitely unless it is legally disbanded. Limited liability prevents you from being held personally liable for their company's obligations or legal judgements. Shareholders were protected from legal responsibilities and debts by corporate entities.
