<h2>using formal writing style</h2>
Explanation:
Informational reports are written for the purpose of internal audience.
A formal writing style consists of the following:
- It will be written using active voice
- Will avoid vague language
- Sentences will be crisp and clear. No too lengthy sentences are allowed
- Abbreviations will not be present
- Sentences will include items expressed in a positive way
- There will not be any exaggeration of pointers
- No exclamation mark will be outside the quotation marks.
Answer:<em> </em><em>Therefore, the cost of preferred stock is </em><em>17.72%.</em>
Given:
Selling price (preferred stock) = $21
Annual dividend = 3.5%
Flotation costs = $1.25
We can compute the cost of preferred stock as:
Cost of preferred stock = 3.5 / ($21 - $1.25)
Cost of preferred stock = 17.72%
<u><em>The correct option is (b)</em></u>
Answer:
The correct option is D,economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
Explanation:
Economic costs are usually higher because economic costs comprises of both implicit and explicit costs whereas accounting profit calculation only consider the explicit costs.
Explicit costs are the costs that require actual cash flows from the business such as the payment of rent,salaries and many more.
However,implicit costs are not real costs in actual term,they are costs of forgone benefits such as the salaries the business owner if he takes employment elsewhere.
D for sure is the correct answer
