DJ Industries has outstanding $70 par value preferred stock that pays a 7.75% dividend rate per year. You estimate that the stock has a required discount rate of 18%. What is the intrinsic value of this preferred stock?

it was decent, could have been a little better.. how bout you lol.

answer; rapid growth in buyer demand and high buyer switching cost;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.