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.
Answer:
Commercial banks, required reserve, loans, deposits, create.
Explanation:
The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.
The major function of commercial banks is
1. Accepting deposits from people and business organzations.
2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.
Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.
Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.
Answer:
Simply and shortly, the only thing that the Publishing Industry can learn from the Music Industry is that you either Adapt or you Perish.
Explanation:
The music labels and record labels were reluctant to turn towards online platform based music stores and eventually when apple and the android released their iTunes and play store platforms just for the music, the whole industry business model changed and went online and the traditional music stores went to decline.
the online business model was not embraced by the traditional music stores and they paid the price for it.
Today, we see an increasing growth of E books and online publishing of books, journals, news papers, tabloids and magazines. The publishing industry will have adapt for this.
Answer:
E
Explanation:
Cognitive dissonance is sometimes referred to as buyer's regret and often arises when consumers begin to wonder if they made the right purchase decision. This happens during the post-purchase evaluation stage.
Answer:
Determine whether the following bonds payable will be issued at face value, at a premium, or at a discount:
a.The market interest rate is 8%. Idaho issues bonds payable with a stated rate of 7.75%.
- Bonds issued at discount because market rate is higher than the bond's coupon rate.
b.Austin issued 9% bonds payable when the market interest rate was 8.25%.
- Bonds issued at premium because market rate is lower than the bond's coupon rate.
c.Cleveland's Cars issued 10% bonds when the market interest rate was 10%.
- Bonds issued at par because bond's coupon rate is equal to the market rate.
d.Atlanta's Tourism issued bonds payable that pay the stated interest rate of 8.5%. At issuance, the market interest rate was 10.25%.
- Bonds issued at discount because market rate is higher than the bond's coupon rate.
