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adell [148]
4 years ago
12

At the present time, Ferro Enterprises does not have any preferred stock outstanding but is looking to include preferred stock i

n its capital structure in the future. Ferro has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $14 per share. If the investors pay $134.26 per share for their investment, then Ferro’s cost of preferred stock (rounded to four decimal places) will be ___________?
Business
1 answer:
PSYCHO15rus [73]4 years ago
6 0

Answer:

Cost of preferred stock

= <u>Perpetual dividend</u>

  Current market price

= <u>$14.00</u>

  $134.26

= 0.1043 = 10.43%

Explanation:

Cost of preferred stock is calculated as perpetual dividend divided by current market price. Cost of preferred stock is the minimum rate of return expected by preferred stock holder.

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Consider that a company bought a machine for 72,540 dollars. This equipment is assumed to have a life of 15 years and a salvage
pochemuha

Answer:

58,350 dollars

Explanation:

In straight line depreciation, we calculate annual depreciation by using the formula shown below:

Annual Depreciation = \frac{Cost - Salvage}{Useful Life}

Given,

Cost is 72,540

Salvage Value is 1590

Useful Life = 15 years

We have:

Annual Depreciation = 72540-1590/15 = 4730

At end of Year 3, the total depreciation would be:

4730 * 3 = 14,190

The remaining value of the item would be:

Cost - Total Depn for 3 years

72,540 - 14,190

= 58,350 dollars

8 0
4 years ago
When a union raises the wage above the equilibrium level, it a. raises both the quantity of labor supplied and the quantity of l
kompoz [17]

Answer: Option (d) is correct.

Explanation:

Option (d) - Raises the quantity of labor supplied and reduces the quantity of labor demanded.

When a union raises the wage above the equilibrium level, this will lead to increase the quantity of labor supplied because at this wage more labors wants to work and take the advantage of the higher wages.

At the same time, quantity demand for labor decreases in the economy. This is due to the higher wages which increases the firm's cost of production. So, at this wage firm's demand for labor decreases.  

3 0
3 years ago
Whats the difference between the salary and hourly calculator? pleaseeee helpp
Bingel [31]
The main difference between the salary and hourly calculator is that the salary calculator is paid to an employee on the basis of an annual amount that is known as salary and hourly calculator is based on the hourly payment. This is the basic difference between the salary and hourly calculator. For a salaried employee, the number of hours worked in a month can vary without affecting the total salary fixed. In case of hourly calculated payment, the number of hours worked has a direct impact on the payment received. If the number of hours worked is less then the hourly calculated payment will also be less.
5 0
3 years ago
Gate Grocery's most popular candy bars cost $0.50 each and sells for $0.75. Management determined that it had purchased 3,000 ca
aivan3 [116]

Answer:

The cost of goods sold for February is $1,525

Explanation:

For computing the cost of goods sold, the following equation should be used which is shown below:

Cost of goods sold = Opening stock of candy bar + Purchase of candy bar  - closing stock of candy bar

                                = 200 + 3,000 - 150

                                = 3,050  candy bars

Now, the total cost of good sold is equal to

= Cost of good sold × cost per candy bar

= 3,050 × $0.50

= $1,525

The sale price for per candy bar should not be taken because we have to compute the value at cost not at sale price. Thus, it would not be taken in the computation part.

Hence, the cost of goods sold for February is $1,525

6 0
3 years ago
A corporation that operates in several countries but without significant ties to any of them is a(n)
Ivahew [28]
This is a multinational corporation.
8 0
3 years ago
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