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aev [14]
2 years ago
13

Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $95.50, b

ut flotation costs will be 10% of the market price, so the net price will be $85.95 per share. What is the cost of the preferred stock, including flotation
Business
1 answer:
never [62]2 years ago
4 0

The cost of the preferred stock including flotation is 13.37%.

Explanation:

The computation of the cost of the preferred stock is shown below:

= Annual dividend ÷ Price × (1 - flotation cost)

= $11 ÷ 87.50 × (1 - 0.06)

= $11 ÷ $82.25

= 13.37%

Hence, the cost of the preferred stock is 13.37%.

Learn more about flotation here :

brainly.com/question/13501786

#SPJ4

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Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which p
Mashcka [7]

Answer:

The correct answer is option a.

Explanation:

If foreigners find US  goods and services more desirable, they will demand more of these goods and services. The price level will increase. The domestic firms will start producing more to earn higher revenue and profits. The output level will increase.

To offset this increase in output the government will decrease money supply in the economy. To do so the government can adopt several measures. Government can adopt contractionary monetary or fiscal policy. Government can reduce money supply by reducing purchases.

8 0
4 years ago
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What employment issue for flexible employees does the Walling v. A.H. Belo Corporation Supreme Court ruling address
lutik1710 [3]

Answer:

Fixed weekly pay

Explanation:

The Walling v. A.H. specified weekly salary for variable employees job challenge for flexible workers Ruling document of the Belo Company Supreme Court. Workers who work varying workweeks receive a set wage, irrespective about how many times per week may work. For starters, if they operated 35 or 40 hours, the employee should receive the same weekly wage. Therefore, the hourly wage of a salaried employee differs depending according to how many hours they work.

5 0
3 years ago
1. Which of the following is the most permanent type of business organization?
DerKrebs [107]
1) The most permanent type of business organization is a Corporation.   
     It<span> is a company or group of people or an organisation authorized to act as
     a single entity (legally a person) and recognized as such in law. 
</span><span>2) Quasi-contracts are based on the theory of Equity.   </span><span>A quasi-contract is a
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     substitute for a contract that is formed to impose equity between two
     distinct parties. 
3) </span>The object of the contract must be lawful.. T<span>he </span>object<span> of a </span>contract must
     be lawful<span> when the </span>contract<span> is made, and possible and ascertainable by
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5 0
3 years ago
Will Co. is expected to pay a dividend of $2 per share at the end of year 1(Div1), and the dividends are expected to grow at a c
Lerok [7]

Answer:

Expected return or the cost of equity capital for the firm = 14%

Explanation:

V(0) = D1 / r - g

v = 20, D1 = 2, r = ?, g = 0.04

20 = 2 / (r - 0.04)

20r - 0.8 = 2

20r = 2 + 0.8

20r = 2.8

r = 2.8/20

r = 0.14

r = 14%

Note: Application of constant growth dividend discount model was required to solve the question

8 0
4 years ago
Most state legislators are ________. Group of answer choices from the most popular families in the state more educated than the
taurus [48]

Answer:

Typical of a cross section of the population

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Each state in the U.S have state legislators who are elected by the citizens of the states who are eligible to vote therefore most state legislators are a typical cross section of the population in the state that they are serving as  a legislator in the state legislative arm of Government.

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8 0
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