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NISA [10]
3 years ago
13

A company's $100, 8% preferred is currently selling for $85. What is the company's cost of preferred equity?

Business
1 answer:
shutvik [7]3 years ago
5 0

Answer:

9.4%

Explanation:

Kps = Dps/Pps x Dps = $100 x 8% = $8, Kps = 8/85 = 9.4%

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The basis of competition is freedom of ______ exercised in the pursuit of ______.
Mazyrski [523]

The basis of competition is freedom of choice exercised in the pursuit of money.

<h3>What is competition?</h3>

Competition is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements.

The purpose of competition is for businesses to try to outdo each other in order to earn more.

Also, competition enable businesses come up with newer ways to please their customers, hence come up with amazing innovative ideas and better products.

Hence, the basis of competition is freedom of choice exercised in the pursuit of money.

Learn more about economic competition here : brainly.com/question/967467

8 0
2 years ago
Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga
sergejj [24]

Answer:

Cash $60,000 (debit)

Investment Income $60,000 (credit)

Explanation:

It is Important to note that the Acquirer (Horicon Corp) is a Corporate.

The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.

The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :

Cash $60,000 (debit)

Investment Income $60,000 (credit)

6 0
3 years ago
Read 2 more answers
In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe
Murrr4er [49]

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

7 0
3 years ago
scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increase
kenny6666 [7]

Answer:

Elastic demand

Unit elastic demand

Inelastic demand

Explanation:

Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price.

Denand is elastic if when price is increased, the quantity demanded changes more than the increase in price. Quanitity demanded is more sensitive to changes in price.

If price is increased, the quantity demanded falls and as a result the total revenue earned by sellers falls.

The elasticity of demand is usually greater than 1 when demand is elastic.

Demand is unit elastic if a change in price has the same proportional change on quantity demanded. The coefficient of elasticity is equal to one.

If price is increased, the quantity demanded changes by the same proportion so there's no change in total revenue of sellers.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

Coefficient of elasticity is usually less than one.

If price is increased, there is little or no change in the quantity demanded and as a result the revenue earned by sellers increase.

I hope my answer helps you

3 0
3 years ago
A five-year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It
riadik2000 [5.3K]

The value of Net present value is $12,895.45.

Given that

initial investment = $50,000

1st-year cash flow = $15,000

2nd-year cash flow =$ 25,000

3rd-year cash flow =$ 30,000

4th-year cash flow = $20,000

5th-year cash flow = $15,000

rate = 20%

using formula

NPV = \frac{R}{({1+i})^t}

NPV = \frac{15000}{({1+0.20})^5}\\NPV = 12895.45

<h3>What is Net Present value?</h3>
  • The current value of a future stream of payments from a business, project, or investment is determined using net present value, or NPV.
  • You must predict the timing and size of future cash flows in order to determine NPV, and you must choose a discount rate that is equal to the least allowable rate of return.
  • Your cost of capital or the rewards offered by substitute investments with comparable risk may be reflected in the discount rate.
  • Positive NPV indicates that the rate of return on a project or investment will be higher than the discount rate.
  • to learn more about Net present value with the given link

brainly.com/question/14293955

#SPJ4

4 0
1 year ago
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