Answer:
6.2%
Explanation:
The instrinsic value of the company's preferred stock can be determined as the sum of all discounted dividends. The cashflow pattern of preferred shares is similiar to perpetuity.
Preferred share price = CF/(1 + Cost of preferred stock) + CF/(1 + Cost of preferred stock)^2 + ... + CF/(1 + Cost of preferred stock)^n, or reduced form as
= CF/Cost of preferred stock
Putting all the number together, we get:
96 = 5.95/Cost of preferred stock, or Cost of preferred stock = 6.2%
Answer:
A. trade agreements systematically expect more liberalization by developing countries than is expected of developed countries
Answer:
If a shortage exists in the cantaloupe market, then the current price must be lower than the equilibrium price. For the market to reach equilibrium, you would expect buyers to offer higher prices.
Explanation:
As there is shortage in cantaloupe market ( Supply curve shifts to the left), there are not enough cantaloupe to sell to buyers.
So, buyers will compete for lower supply amount of cantaloupe by willing to pay higher price.
With the existence of supply shortage and buyers is willing to pay higher price, the equilibrium price will goes up, thus it will be higher than the current price.
Answer: profitability
Explanation: profitability measures the return made from one's investment in a particular business or endeavor. The gain or yield accrued will differ from one investment or market segment to the other. In the scenario described above, Caroline has identified some potential markets which she is probably looking forward to dive into. However, studying the profitability of each market segment is essential and can be determined based on factors such the rate or speed at which the market is growing as this will determine the demand, how competitive the market is as competitiveness plays a role in an investors level of preparedness and the market access. Other factors to determine profitability may include ; government regulation, seasonality of product and so on.