A company has outstanding preferred stock with a 5% dividend rate. The interest rate on debt when the preferred stock was issued was 3%. Today, the interest rate is 7%. What impact would you expect this to have on the market value of the preferred stock

Which statement is true of both presidential and parliamentary systems of government? a. the executive branch operates independently from the legislative branch. b. the members of the legislative branch are directly elected by the people. c. the head of government is chosen by members of his or her political party. d. the head of government is directly elected by the people

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?

Experienced problem solvers always consider both the value and units of their answer to a problem. why?