1. Market Efficiency Implications: Explain why a characteristic of an efficient market is that investments in that market have zero NPVs.
2. Semistrong Efficiency: If a market is semistrong form efficient, is it also weak form efficient? Explain.
3. Preferred Stock and Bond Yields: The yields on nonconvertible preferred stock are lower than the yields on corporate bonds. Why is there a difference? Which investors are the primary holders of preferred stock? Why?

Answers

Answer 1

Market Efficiency Implications: In an efficient market, investments have zero net present values (NPVs) because all available information is already reflected in the market price of the investment.

This means that any potential profits that could be made from an investment have already been accounted for, and there is no opportunity for investors to consistently earn returns that exceed the market average.

This efficiency implies that investors cannot beat the market by consistently picking undervalued stocks or avoiding overvalued ones.

3. Preferred Stock and Bond Yields:

Nonconvertible preferred stocks typically offer lower yields than corporate bonds because they are considered less risky.

Preferred stock is senior to common stock in the capital structure and has a fixed dividend payment that must be paid before common shareholders can receive any distributions.

Additionally, preferred stock may have a call feature that allows the issuer to redeem the shares at a predetermined price, which reduces the risk to investors.

The primary holders of preferred stock are typically institutional investors, such as pension funds, that are seeking stable income streams and want to avoid the volatility associated with common stocks.

To know more about Preferred stock visit:

https://brainly.com/question/15078323

#SPJ11


Related Questions

Drag the tiles to the correct boxes to complete the pairs.
Match the different types of incomes to their sources.

Answers

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:

A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

Answer:

interest = the amount earned on bonds or savings accounts

capital gains = the profit earned from selling a financial asset

dividend = the amount of money paid to share holders of a company

Explanation:A capital gain is a financial term that is most often captured on tax returns when money is made above the face value or declared value of an asset or property that is sold.

When an individual 'purchases' a bond or places money into a savings account, that money is held in an "interest" baring account or grows over time. Savings account: A percentage is paid for holding those funds in a savings account based on the amount held. The financial institution where the funds are held, pays the owner a fee for use of said money that it is held. Those funds are called "interest" and are collected by the owner of those funds. A bond is typically purchased at a reduced face value amount. If the bond is held for a stated amount of time, the bond value reaches maturity after that time. Those gains are called interest and are typically captured on a 1099i form for tax purposes.

A dividend is a profit paid to a stockholder or investor of a company/business entity. Typically those funds are paid when a threshold of profits are reached by that company/business entity. Typically a dividend is captured on a 1099d form for tax purposes.

The risk-reward relationship says:

Answers

im not understanding this question.. can you reword it?

An oligopoly is a market structure in which a large number of firms dominate the market. T or F

Answers

Answer: F

Explanation:

An oligopoly is a market structure in which a large number of firms dominate the market.

An oligopoly is a market structure in which a large number of firms dominate the market. FALSE.

brief explain difference between moa and aoa ?​

Answers

Answer:

The MOA (Memorandum of Association) describes the powers and objects of the company, the AOA (Article of Association) defines its rules and the AOA (Articles of Association) is subordinate to the memorandum.

List the type of banking service each consumer would be most likely to use. Explain your answer.

a. A person planning to open a fitness center
b. A musical group
c. wealthy senior citizen
d. A buyer of a van
e. A high school recycling club

Answers

Think the answer is c but I’m not sure if it’s correct
Wealthy senior citizen

What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives

Answers

Answer:b

Explanation:

How do I find the cash flow coverage ratio?

Answers

Explanation:

There are a few different ways to calculate the cash flow coverage ratio formula, depending on which cash flow amounts are to be included. A general measure of the company’s ability to pay its debts uses operating cash flows and can be calculated as follows:

Cash flow coverage ratio = $80,000,000 / $38,000,000 = 2.105Cash flow coverage ratio = ($64,000,000 + $4,000,000 + $8,000,000) / $38,000,000 = 2

what percentage of CTE learners enroll in post secondary education?​

Answers

Answer:

10th-grade public school students in 2002 who were CTE concentrators in high school, 72 percent enrolled in postsecondary education by 2006, or two years after their expected year of high school graduation, and 84 percent enrolled by 2012, or eight years after their expected year of high school graduation.

Answer:

75% – Percentage of high school students concentrating in a CTE discipline who pursue post-secondary education 43% – Percentage of young workers holding a CTE-related license or certificate who earn more than those holding an associate degree

Explanation:

What careers are in the Information Support and Services career pathway of the IT career cluster? (15 points for you)

Question 1 options:

graphic artists, painters, artists


broadcasters, journalists, writers


help desk specialists, PC support specialists

Answers

I think it’s “help desk specialists, PC support specialists”

What would Jamie Lee's financial liability have been had she waited more than two days to report the debit/ATM card lost or stolen

Answers

Explanation:

If Jamie notifies the bank within 2 days of the lost card , her liability for unauthorized would be $50.

Jamie Lee's as the account holder is financially responsible for any form of transfers or withdrawals that has or will be made from their accounts and until He report the theft, he will be liable to all withdrawals.

What is a Checking Account:

A checking account is known to be a kind of bank account that is often used by people as a deposit account.

The usual amount deposited by them in this account is known to be used for paying bills and other form of purchases.

Base on the fact above, Jamie Lee's would be liable for his financial liability because she had waited for more than two days to report her debit/ATM card lost or stolen and as such any theft that happen within those two days on her account is her fault.

Learn more about  checking account from

https://brainly.com/question/24751568

All of these statements apply to effective decision makers except:

A. They take risks based on intuition and gut feelings
B. They are flexible and resourceful
C. They rely on personal ‘scripts’ that help them manage how to act and react
D. They recognize that the same solution may not apply to similar situations

Answers

Except for A because that’s just what makes sense

HELP PLEASE!!!
what is the outcome when a person defaults on a home loan?
A. the person goes to jail.
B. the bank will make the person work a second job.
C.the bank will take the person's car.
D.the bank will foreclose on the home.

Answers

Answer:

D.the bank will foreclose on the home.

Explanation:

The bank may even sue and garnish wages and financial accounts. The bank may even serve a conversion of accetts.

Facts about the chip category obtained from AC Nielsen are?


syndicated data.



survey data.



questionnaire data.



primary data.



experimental data.

Answers

Answer:

Explanation:

Then what is the question

what's the answer? please help, it's overdue​

Answers

Answer: Honestly in my opinion that's a no

Explanation: because that's there imagine without them they wouldn't be able to get that image up and making profit therefore the player should get a cut of the profit that is made.

Which of these is NOT a concern for consumers in times of inflation?
a.They cannot anticipate the cost of goods and services.
b.They lose money on their investments and savings.
c.They are at a disadvantage when paying back borrowed money.
d.They struggle when they are on a fixed income.

Answers

Answer: D

Explanation:

In what type of economy do individuals and firms determine what will be produced?
Mixed
Traditional
Market
Command

Answers

Answer:

market

Explanation:

I think it’s warket hope this helps

____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

Answers

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

what is the differences and similarities between rental goods services and non goods services

Answers

Answer and Explanation:

Rented-Goods Services are represented by retailom where consumers can own a good, or use a service for a specified time. As an example of this, we can mention hotel rooms, ski clothes, cars, houses, among others.

Nongoods Services are also represented by retail, but it presents personal services, where consumers can try them, judge them and then decide if they want to own them.

​Lilliput's aggregate income in 2015 was ​$48,002,000,500. Suppose the population of Lilliput was 20,100,500 in 2015​, of which 16,086,000 people were employed. ​Therefore, Lilliput's income per capita in 2015 was ​$nothing. ​(Round your answer to two decimal places.​) Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. Lilliput ▼ suffered didn't suffer from a recession in 2016. ​Lilliput's yearly unemployment rate for 2016 is likely to be ▼ greater thangreater than not significantly different fromnot significantly different from lesser thanlesser than the previous​ year's value.

Answers

Answer: See explanation

Explanation:

1. Lilliput's income per capita in 2015 will be calculated as:

= Income / Population

= $48,002,000,500 / 20,100,500

= $2388

2. Suppose the aggregate income of Lilliput was ​$6.5 billion in​ Q1:2016, ​$5.2 billion in​ Q2:2016, ​$5.4 billion in​ Q3:2016, and ​$5.9 billion in​ Q4:2016. We can say that Lilliput (suffered) from a recession in 2016. This is because there was a fall in the aggregate income from the first quarter which was $6.5 billion to $5.4 billion in the second quarter

3. Lilliput's yearly unemployment rate for 2016 is likely to be (greater than) the previous​ year's value.

Why would My future job be a flight attendant

Answers

Answer:

if you like to travel and be on planes and get that bag then be a flight attendant :) do what you want to!

Explanation:

What are three elements of negligence?
Actual Harm
Breach of duty
State of mind
Duty of care
Proximate cause
Motive

Answers

Answer:

actual harm

breach of duty

duty to act

Por que se dice que emprender suele ser una decisión muy difícil quien la toma sabe que esta renunciando a la estabilidad que otorga un salario

Answers

Answer:

porque se dice que quiero tomar el siguiente

The markets for prostitution in Nevada and New Jersey have two important differences: 1) prostitutes in New Jersey face higher costs because of government efforts to prosecute them and 2) customers in New Jersey face higher risks of contracting diseases from prostitutes because the illegal nature of the business makes reliable information about product quality much more costly to obtain. Given these facts, which state would you expect the price of prostitution services to be higher? Why? Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Answers

Answer:

Given these facts, which state would you expect the price of prostitution services to be higher? Why?

Since the risks associated to prostitution are higher in New Jersey, we could assume that the price for these services will be higher there. The supply curve of prostitution shift to the left, increasing the price and decreasing the quantity.

Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?

Since the price is higher in New Jersey, the quantity demanded will be lower. Also, the risks associated to consuming the service will shift the demand curve to the left, reducing the quantity.

HELP ME PLEASEE!! ILL GIVE CROWN!!!
which of the following should credit be used for?
A. small things you want
B. large things you need and that you can repay over time.
C. money that you can never afford to repay.
D. purchasing things you want so you dont have to save.

Answers

Answer:

B

Explanation:

Credit should be used for large things that you can't afford at the moment but over time will be able to repay (like bills). You should never purchase things that are too expensive for you to repay (within a year.)

Matt works part-time and is paid $6.75 per hour. Determine Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours. Round your answer to the hundredths place.

Answers

Answer:

Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69

Explanation:

Per hour amount paid to Matt = $6.75

Total number of hours worked by Matt = 20.25

To find Gross pay, multiply hours worked and hourly rate of pay.

Therefore,

Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours [tex]=20.25(6.75)=\$136.6875[/tex] ≈ $136.69

Which of these is NOTa concern for consumers in times of inflation? a.They cannot anticipate the cost of goods and services. b.They lose money on their investments and savings. c.They are at a disadvantage when paying back borrowed money. d.They struggle when they are on a fixed income.

Answers

Answer:

c.They are at a disadvantage when paying back borrowed money.

Explanation:

In any economics of a country, inflation may be defined as the fall of the value of the money or currency of a country over a period of time. In inflation, the general price level increase and the value of money decreases.

Due to inflation, with each currency unit, less of goods or services can be bought. In inflation, the consumers are not concern about the disadvantage when they pay back the money that they borrowed because the value of the money decreases. Money decreases its value but the demand of goods and services increases in the economy.



When your tire blows out in the middle of a drive, you should

Answers

You should tap the breaks repeatedly and pull over

get out of the car and change it

A self-employed psychologist treats clients in an office in his own house. What must the psychologist do with his house in order to best serve clients?

build extra rooms for client treatment
keep the house clean and private
buy snack foods for the kitchen
have a large television

Answers

Answer:

keep the house clean and private.

Explanation:

I know someone who does exactly this. Also, by keeping certain parts of the house either exclusively or predominantly for business, he can write that square footage off in taxes.

Answer:

Its B

Explanation:

equity shareholders are called what ​

Answers

Answer:

owners

Explanation:

Shareholders' equity represents the amount invested by the owners of a company in the business by either retaining earnings over time or by investing money in it. The shareholders' equity is a form of a company's net assets. Equity shareholders are also known as Equity Stockholders.

The equity shareholders of a company are called its owners.

Sandia Inc. Wants to acquire a $360,000 computer-controlled printing press. If owned, the press would be depreciated on a straight-line basis over 10 years to a book salvage value of $0. The actual cash salvage value is expected to be $25,000 at the end of 10 years. If purchased, Sandia will incur annual maintenance expenses of $3,000. These expenses would not be incurred if the press is leased. If the press is purchased, Sandia could borrow the needed funds at an annual pre-tax interest rate of 10%. The lease rate would be $48,000 per year, payable at the beginning of each year. If Sandia has an after-tax cost of capital of 12% and a marginal tax rate of 40%, what is the net advantage to leasing? a.$65,543 b.$57,173 c.$37,737 d.$60,713

Answers

Answer:

c.$37,737

Explanation:

Present value of Cost of Buying = The Cost of Press + [(Post Tax annual maintenance expenses - Annual Depreciation Tax shield)*PVIFA (6%,10)] - [Post tax Salvage Value*PVIF (12%,10)]

PV of Cost of Buying = 360000 + (3000*(1-40%)-360000/10*40%)*7.360 - 25000*(1-40%) * 0.322

PV of Cost of Buying = $262,434

Present value of Cost of Leasing = Post tax Lease Payment at the Beginning *(1+PVIFA(6%,9))

PV of Cost of Leasing = $48000*(1-40%)*(1+6.802)

PV of Cost of Leasing = $224,697

Net advantage to leasing = PV of Cost of Buying - PV of Cost of Leasing

Net advantage to leasing = $262,434 - $224,697

Net advantage to leasing = $37,737

Other Questions
Write the chemical formula for magnesium nitrate hexahydrate The inequality |2x - 5 > 8 can be written as which two inequalities? Please help its confusing meeeeee Phenytoin blocks the opening of voltage-gated na channels in neurons. therefore, this action has its primary effects on which part of the neuron? The infection control nurse observes a new graduate nurse in the intensive care unit. Which action by the graduate nurse requires intervention by the infection control nurse Gordon Jones is considering purchasing a computer from Best Buy. He has created a scale for rating eight different computers on three different characteristics. He plans to make a short list of only those computers that score at least a 7 on his scale on all three characteristics. Which of the following choice heuristics has he chosen? The majority of neurotransmitters migrate across the synaptic gap and latch onto receptor sites of the receiving neuron's: If __________ is successful, a qualified candidate will be hired to join the team and will be participating in one of hiltons numerous training and development programs. When writing an argumentation essay, the writer should never raise the point of an opposing view.A. TrueB. False Anita is developing a website for her photography business. On the home page, she wants to include a link to another webpage in her website. What type of link should she insert? 2. When using the technique of direct characterization, authors often use.others' opinionslong sentencesphysical traitsto describe characters. When the soil is saturated in a gently sloping area, any additional rainfall in the area will most likely It is always feasible that a substance will dissolve in water when:A. Enthalpy is negative and entropy is positive.B. Enthalpy is negative and entropy is negative.C. Enthalpy is positive and entropy is positive.HELP PLEASE 15 points An ambiguous word or phrase is one that cannot have more than one meaning. a. true b. false Read the excerpt from Early Victorian Tea SetIn the eighteenth century Josiah Wedgwood had madesome of the most expensive stoneware ceramics-injasper and basalt-in Britain, but this tea set showsthat by the 1840s, when Wedgwood produced it thecompany was aiming at a much wider market. This isquite clearly mid-range pottery simple earthenware of asort that many quite modest British households werethen able to afford But the owners of this particular setmust have had serious social aspirations, because allthree pieces have been decorated with a drape of lacyhallmarked silverWhich descriptive details from the text best help thereader visualize the specific earty Victorian tea set thatis the central topic of the text?some of the most expensive stoneware ceramicsaiming at a much wider marketO quite clearly mid-range potteryO decorated with a drape of lacy hallmarked silverNextSubwon't The fed engages in open market operations and sells government securities. the result is? ach of the letters on the map above marks a body of water in Southeast Asia. Which two letters represent gulfs Find the surface area of the composite solid. Round your answer to the nearest hundredth.A. 424.11 ftB. 438.00 ftC. 449.00 ftD. 549.78 ft Describe the general ledger after adjusting and closing entries have been posted. A person is less likely to help an individual in need if there is a large group of people around than if there is a small group of people. please select the best answer from the choices provided t f