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bearhunter [10]
3 years ago
5

The Shoe Box pays an annual dividend of $3.80 on its preferred stock. What is the cost of preferred if the stock currently sells

for $42.70 a share and the tax rate is 21 percent
Business
1 answer:
Viefleur [7K]3 years ago
4 0

Answer:

8.90%

Explanation:

D = $3.80

P = $42.70

Tax = 21%

R =?

from the given information the dividend model is to be used

P = D1/r-g

42.70 = 3.80/r-0

42.70r =3.80

r        =3.80/42.70

r =0.8899/8.90%

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he management accountant for​ Giada's Book Store has prepared the following income statement for the most current​ year: Cookboo
dlinn [17]

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current​ year:

                                               Cookbook  Travel Book    Classics   Total

Sales                                        $68,000  $126,000  $53,000  $247,000

Cost of goods sold                    40,000     66,000     21,000     127,000

Contribution margin                  28,000     60,000    32,000     120,000

Order and delivery processing 21,000     24,000      11,000       56,000

Rent​ (per sq. foot​ used)              2,000       5,000      4,000         11,000

Allocated corporate costs          8,000        8,000      8,000       24,000 Corporate profit                     ​$​ (3,000​)  $23,000    $9,000     $29,000

Corporate profit =                     $29,000

less allocated cookbook costs   10,000

Adjusted corporate profit =      $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.

4 0
3 years ago
Absolute v. comparative advantage activity this chart shows how many units of tractors and cotton workers can produce in the uni
goldenfox [79]

Answer: a). Spain

b). none

c). 2.4

Explanation: a). Absolute advantage occurs when a country produces more of a good than the other country. In this case, Spain produces 50 units of Tractors while, Bolivia produces only 30 units of Tractors. Thus, Since Spain is producing more it has an absolute advantage in Tractors.

b). Both the countries are producing equal units of Cotton. Thus, we can say that none of them has an absolute advantage in cotton production.

c. Opportunity cost is the cost of the lost alternative. When Spain produces Tractors it is sacrificing production of Cotton. So, opportunity cost on 1 unit of Tractor will be,

Opportunity cost = \frac{120}{50} =2.4

Thus, 2.4 units of cotton which is given up is the opportunity cost of Spain for producing 1 unit of Tractor.

4 0
3 years ago
If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
solmaris [256]

For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

<h3>Why is the relationship between demand and price of prestige products direct?</h3>

The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.

And when the quantity demanded increases, the price tends to increase.

An example of a prestige product is an old car.

Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

Learn more about the demand for prestige products at brainly.com/question/6374886

3 0
2 years ago
Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
Brut [27]

Answer:

C. Scenario Analysis

Explanation:

Scenario Analysis is analysis of computing the Net Present Value by changing various variables, that is change in values of Sales, Variable Cost, Revenue, Cost of project and various other things. Basically it measures the Net Present Value with respect to various factors associated with calculating the net present value, as Jamie is calculating Net Present Value with different factors, that is in different scenarios, it is called Scenario Analysis.

8 0
3 years ago
Activities performed by an applicant after an interview intended to express continued interest in employment with the
goldfiish [28.3K]

Answer:

  • Activities performed by an applicant after an interview intended to express continued interest in employment with the company are referred to as follow-up activities
4 0
2 years ago
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