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blondinia [14]
3 years ago
9

. Bosio Inc.'s perpetual preferred stock sells for $85.00 per share, and it pays an $8.50 annual dividend. If the company were t

o sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC
Business
1 answer:
ololo11 [35]3 years ago
4 0

Answer:

$10.42%

Explanation:

The company's cost of preferred stock for use in calculating the WACC can be derived using the dividend valuation model because it is same as calculating the cost of equity with slight modification.

Dividend valuation model: Kp = Do / Po (ex dividend)

where:

Kp = Cost of Preference shares

Do = current dividend

Po = Price of shares

Note that the flotation cost has to be adjusted against the price of the shares

Hence Kp = $8.5 / $85 (100% - 4%) = 0.104166

Hence, The company's cost of preferred stock for use in calculating the WACC is 10.42%

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Which of the following is not one of the activities found on the statement of cash flows?
Andrej [43]

Answer:

option A  

Explanation:

Throughout financial accounting, the cash flow statement, also recognized as a cash flow statement, is indeed refers to a financial statement demonstrating how adjustments throughout balance sheet balances and sales impact cash balances and splits the report in grouping of Operating activities, financing activities and investing activities.

Particularly, the cash flow report deals with cash flow into and out of the corporation. As an academic discipline, the cash flow statement is helpful in determining a corporation's brief-term competitiveness, especially the capacity to pay expenditures.

4 0
3 years ago
Ken went shopping with only $160 on him. He wants to buy a new pair of sneakers and a pair of designer pants. Each item costs ex
Nadya [2.5K]

Answer:

4) when resources are scarce, people face tradeoffs

Explanation:

All resources are scarce, but some are more scarce than others. For example, the day of the richest or poorest person in the world last exactly the same, 24 hours. You cannot buy more time per day. Even the richest person in the world has a limited amount of money, he/she cannot own all the money in the world. Some countries are rich in natural resources, but do not have capital. This leads to the concept of opportunity costs, which are the benefits lost or extra costs associated with choosing one alternative action or investment over another one. If Ken buys the new pair of sneakers, his opportunity cost is the pair of designer pants.

3 0
3 years ago
An accountant increases the price he charges for his services by 66 percent. In​ response, the demand for his services decreases
Rama09 [41]

Answer:

Decrease

Explanation:

The accountant's revenue will decrease because the demand for his services has fallen by 1,818%, while the price he charges has only gone up by 66%.

The rise in prices will not be enough to cover the losses for such a deep fall in demand.

For example, suppose that before, the accountat used to complete 200 services a month for $100 per year, his total revenue is = 200 x $100 = $20,000.

Now, he will charge 68% more, the new service fee is $168, but demand for his services will now be a negative 3436 (200 x 1,818% = 3636), so his revenue will be 0, or even, negative (he could get into debt to afford his expenses).

7 0
3 years ago
Positive qualities and character traits that determine how you act and perform your job refer to
nata0808 [166]
Based on my opinion, the best answer would be B.
I may not be correct but...
I hope this helps:)
6 0
4 years ago
question 1 a data analyst identifies and classifies keywords from customer reviews to improve customer satisfaction. this is an
ehidna [41]

When a data analyst identifies and classifies keywords from customer reviews to improve customer satisfaction, this is an example of categorizing things.

<h3>What is data?</h3>

Data can be defined as a representation of factual instructions (information) in a formalized and structured manner, especially as a series of binary digits (bits) or strings that are used on computer systems in a company.

<h3>Who is a data analyst?</h3>

A data analyst can be defined as an expert or professional who is saddled with the responsibility of inspecting, transforming, analyzing, and modelling data with the sole aim of discovering useful information, providing insights, and creating informed conclusions, so as to support decision-making.

<h3>The data analyst six (6) problem types.</h3>

Generally, there are six (6) problem types that are associated with a data analyst and this include the following:

  • Making predictions
  • Categorizing things
  • Spotting something unusual
  • Identifying themes
  • Discovering connections
  • Finding patterns

In this context, we can infer and logically deduce that a data analyst identifying and classifying keywords from customer reviews in order to improve customer satisfaction is an example of categorizing things.

Read more on data analyst here: brainly.com/question/27853454

#SPJ1

3 0
2 years ago
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