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.
According to liquidity preference theory, a drop-off in money demand for some ground other than a change in the price degree causes The interest rate to go down, so the aggregate demand shifts.
<h3>What is aggregate demand?</h3>
The total amount of goods and services produced in an economy is the measurement of the aggregate demand.
The aggregate demand is shown as the total amount of money is exchanged at the particular price level and point in time.
Thus, The interest rate to go down,
For more details about aggregate demand, click here:
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Answer:
Credit accumulated depreciation for 2017 is $46,000
Explanation:
Accumulated depreciation increases as a result of increase in depreciation charged on fixed assets.
Given that:
Accumulated Depreciation = $48,000
Deferred Gain on Transfer = $12,000
Amortization of Gain = Deferred Gain on Transfer / 6 years remaining = $12000 / 6 = $2000
Credit to Accumulated Depreciation for 2017 = Accumulated Depreciation - Deferred gain on transfer = $48000 - $2000 = $46000
Answer:
1. Dave has 23 ($10 coins) and 18 ($20) coins.
2. Dave has 18 ($10 coins) and 16 ($20) coins.
Explanation:
1.
Let x be the number of $10 coins.
Then, the number of $20 coins will be 41-x.
The equation for the sum of money can be written as:
590 = 10x + 20 * (41-x)
590 = 10x + 820 - 20x
590 - 820 = -10x
-230 / -10 = x
x = 23
This means that Dave has 23 $10 coins and (41-23 = 18) 18 $20 coins that sum up to a face value of $590.
2.
Using the same priciple,
let x be the number of $10 coins
let 34-x be the number of $20 coins
Sum of money equation:
500 = 10x + 20 * (34-x)
500 = 10x + 680 - 20x
500 - 680 = -10x
-180 / -10 = x
x = 18
So, Dave has 18 $10 coins and (34-18 = 16) 16 $20 coins that add up to a face value of $500.