<u>Solution and Explanation:</u>
<u>Given data:</u>
the market price of share = $80, the par value of share = $75, floatation cost = $3.5, corporate tax = 21 %
The Annual dividend = 75 multiply with 16 percent = $12
Hence, the cost of preferred stock = Annual dividend divide by (Current price-Flotation cost)
= 12 / (80-3.5)
after solving, we get, which is equal to
= 15.69% (Approx) (rounded off to 2 decimal places)
NOTE: The Tax rate would not affect the cost of preferred stock financing.
Answer:
the quantity demanded for cereals will increase by 6%
Explanation:
as the consumer increase their consumption base on a higher income, a 10% increase in the consumer income will translate to a 6% in the quantity of cereals. That's because we know that:
Δcereals / Δincome = income elasticity
Δcereals / 10% = 0.6
Δcereals = 10% x 0.6 = 6%
Answer:
The correct answer is Core Competency.
Explanation:
Core competencies are the strengths that define an organization. They provide the basis from which the company will grow, take advantage of new opportunities and offer value to customers. The core competencies of a company are not easily replicated by other organizations, whether they are existing competitors or new entries in their brand.
A company can have more than one basic competence. Basic competencies, which are sometimes called core capabilities or distinctive competencies, help create a sustained competitive advantage for organizations.
The concept of identifying and nurturing core competencies to drive competitive advantages and future growth applies to companies in all sectors.
Answer:
1. A radical innovation.
2. Subcultures
Explanation:
If you wanted your organizational unit to create a new product that is essentially an entirely new industry, you will encourage a radical innovation.
A radical innovation also known as the disruptive innovation is an innovative approach aimed at destroying or supplanting old business strategies and models with an invention to breakthrough and change the whole industries by creating new products.
Because workgroups develop their own subcultures, intranets build a common cultural foundation that can help unify employees in different units and locations around common company values.