Answer:
cost of preferred stock = 9.08%
Explanation:
given data
sells = $97.50 per share
pays annual dividend = $8.50
flotation cost = 4.00% of price paid
solution
we get her cost of preferred stock that is express as
cost of preferred stock = .......................1
put here value and we will get
cost of preferred stock =
cost of preferred stock =
cost of preferred stock = 9.08%
The depreciation expense to be recognized by Joseph in year 1 is $62,500.
<h3>What is depreciation?</h3>
Depreciation is the gradual fall in the value of a fixed asset over its economic life. It doesn't apply to intangible assets.
Given values:
The purchase cost of equipment: $325,000
Residual value: $75,000
Number of years of useful life: 4
Computation of depreciation expense for the year 1:
Therefore, the amount of depreciation charge comes out to be $62,500 to be reported in year 1.
Learn more about the depreciation charge in the related link:
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Break-even analysis is the process used to determine the profitability of a product at various levels of sales.
Answer:
Fixed asset turnover= 7.58
Explanation:
Giving the following information:
Sales revenue= $1,000,000
Fixed assets= $132,000
<u>To calculate the fixed asset turnover, we need to use the following formula:</u>
Fixed asset turnover= sales revenue / fixed assests
Fixed asset turnover= 1,000,000 / 132,000
Fixed asset turnover= 7.58