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VARVARA [1.3K]
2 years ago
7

Warephase Corporation has preferred stock outstanding. The stock has a 16% dividend rate. The stock’s market price is $80 per sh

are, and its par value is $75. If new shares are issued, the firm will pay $3.50 per share in flotation costs. The corporate tax rate is 21%. What is the company’s cost of preferred stock financing?
Business
1 answer:
vladimir2022 [97]2 years ago
8 0

<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.

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Because opportunity cost is the value of something else you might have done with that time or money that you expended there.
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Diversity in work groups can create conflict, so managers should try to minimize diversity when assigning people to teams.T/F
Ostrovityanka [42]

The given statement is False.

Diversity in work groups can create conflicts, so managers should try to minimize diversity when assigning new people to teams, is a False Statement.

Explanation:

Diversity means a whole range of diverse or different things. Diversity can be defined as the state of being diverse. Diversity is a concept which emphasizes that concept that every person is different and unique in his or her own way and we all should respect the differences between people.

People can be considered diverse on the basis of

  • Ethnicity
  • Race
  • Gender
  • Age
  • Physical Abilities
  • Cultures
  • Status
  • Religion
  • Political beliefs, etc.

So when people with diversity come together to work with each other, they may share different opinions on the basis of their different backgrounds and the final result will be a sure success. So managers rather prefer to make teams of people with diversities.

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7 0
3 years ago
All of the following are characteristics of SMART goals except
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The answer is without limits

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3 years ago
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What is the purpose of the owner capital account in the closing process? a.Owner capital is where the period's net income or los
Setler [38]

Answer:

The correct answer is a.Owner capital is where the period's net income or loss is transferred.

Explanation:

The income and expense accounts are canceled and closed at the end of each accounting period, transferring their balances to a summary bridge account entitled "profit and loss", where the balances are summarized. The amounts of the profit and loss account, which reflect the net profit or loss for the period, are transferred to the owner's capital account. These operations are necessary because:

  1. Revenues really increase stockholders' equity, while expenses decrease it.
  2. Through the accounting period these increases and decreases are accumulated in income and expense accounts, not within the owner's capital account.
  3. Closing entries at the end of each accounting period transfer the net effect of these increases and decreases, from the income and expense accounts to the owner's capital account.

In addition, closing entries allow income and expense accounts to start each of the new accounting periods with zero balances. This is also necessary because:

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3 years ago
KB Home decided that they were interested in knowing if offering eco-friendly options within their home offerings will generate
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(A) Casual research would be most appropriate for the given purpose.

<h3>What is casual research?</h3>
  • Causal research is the study of cause-and-effect relationships.
  • To establish causation, the variation in the variable suspected of influencing the difference in another variable must be observed, and the variations from the other variable must be calculated.
<h3>What is descriptive research?</h3>
  • Descriptive research is used to characterize the features of a population or phenomenon under investigation.
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  • Rather, it responds to the "what" inquiry.
<h3>What is exploratory research?</h3>
  • Exploratory research is a methodological approach that investigates previously unstudied research problems.
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<h3>Solution -</h3>

As the definition of casual research states, to establish causation, the variation in the variable suspected of influencing the difference in another variable must be observed, and the variations from the other variable must be calculated.

Therefore, (A) casual research would be most appropriate for the given purpose.

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Complete question:

KB Home decided that they were interested in knowing if offering eco-friendly options within their home offerings will generate greater sales than offering eco-friendly options within an options list to add on to their home offerings. Which type of research would be most appropriate for this purpose

(A) Casual research

(B) Exploratory research

(C) Descriptive research

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