<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.
Answer: selling agent
Explanation:
A selling agent is an agent who sells a product for an economic agent such as an individual, firm or government and gets commission for the products sold.
Carla's Cards uses a selling agent to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy.
Answer: GAMA Corp. has a lower times interest earned (TIE) ratio
Explanation:
The times interest earned (TIE) ratio simply means how the ability of a company to meet its debt obligations is being measured based on the current income that the company has.
Since GAMA Corp. has a higher debt to asset ratio and, therefore, a higher interest expense, it simply means that GAMA Corp. has a lower times interest earned (TIE) ratio when compared to FAMA Corp.
Therefore, the correct option is A.
Answer:determine impacts and those affected.once you know exactly what u wish to achieve and why
Explanation:
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.