Answer:
d. 12.6%
Explanation:
Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued
Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%
Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.
The foreign MNC's like UPS seeking to invest in India because of the country's market potential, skilled workforce and political stability.
The foreign MNCs are investing in India because of cheaper production costs. India is a critical growth market for logistics giant United Parcels Service (UPS) as it aims to provide the predictable and reliable service to B2B domestic market through its new venture called MOVIN.
India's market potential, skilled workforce and political stability are the three key reasons that make India the favored destination for foreign investment. When compared to other countries India is a relatively cheaper place to conduct business.
Hence, these reasons attracts foreign investors towards India.
To learn more about MNC's here:
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Answer:
i dont get the question, can you please make it clear?
This is literally the question from right out of the book. Which the answer physically is into. It tells you to use the table on in your book to answer this question. We cant answer this due to not seeing the picture that is in the book.
