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tester [92]
3 years ago
14

Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividen

d of $7.00 a share. What is the company's cost of preferred stock, rp
Business
1 answer:
Snezhnost [94]3 years ago
3 0

Answer:

11.96%

Explanation:

Calculation for Torch Industries company's cost of preferred stock,

Using this formula

Cost of preferred stock = Dividend / Stock Price * 100

Where:

Dividend =$7.00

Stock Price = $58,50

Hence,

= $7 / $58.50 * 100

= 11.96%

Therefore the company's cost of preferred stock will be 11.96%

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Using contract manufacturing as a strategy to reach global markets gives firms the advantage of
lesya692 [45]

Answer: C. reduced risks

Explanation:

Contract manufacturing refers to when a company outsources the production of certain goods or components that it normally produces to another company and in terms to global markets, to another company in another country ad this is usually done to reduce costs as the company that the production was outsourced to can produce at a cheaper price.

By using this method to reach global markets, the contracting company would be able to reduce financial risk which is the risk that a project will not payback because the costs associated will become less therefore the chances of the project paying back will increase simply because it only has to cover a lesser cost of production.

7 0
3 years ago
Select the best answer: A Notary Signing Agent has been providing signing services with no incidents for over 10 years without h
joja [24]

Answer:

Must still arrange to obtain and pass a background screening

Explanation:

A notary agent is also called a signing agent and they obtain the official signature of an appearer on a document. They ensure that legal documents are authentic, they check identity of the person signing, and serve as witness.

Notary agents are required to obtain a background check every 12 months.

Background checks verify identity, address, criminal record search, vehicle records, and known terrorist list check.

So the notary agent that has been providing signing services for 10 years still needs to obtain a background check.

6 0
3 years ago
Which of the following is added to net income to reconcile to cash from operations?
skad [1K]

Answer:

E. None of the above

Explanation:

The only two accounts that you must add to net income are the amortization and depreciation

In order to reconcile net income to cash from operations the Amortization and Depreciation must be added to Net Income.

Why? because These accounts: Amortization and Depreciation are not cash accounts. This means that the figures in amortization and Depreciation are not actual outflows of cash but just a bookkeeping figure.  

7 0
3 years ago
Cheyenne Corp. reported net income of $196,100 for 2022. Cheyenne also reported depreciation expense of $47,400 and a loss of $5
denpristay [2]

Solution:

                   <u>  Particulars   </u>                                                            <u>Amount</u>

        <u>    Net Operating Income   </u>                                                $ 196,100

Adjustments to reconcile the net to :

Net Cash provided by the operating activities.

Add the depreciation expenses                               $ 47,400

Add loss on disposal of plant assets                       $ 5,600

Add increase in the accounts receivable                $ 10,900

Add increase in Accounts payable                          $ 12,900

Add increases in prepaid expenses                     <u>   $ 3,200   </u>

                                                                                   $ 80,000

Cash balance at the end                                                             $ 276,100                                                                                                    

4 0
3 years ago
Jill buys a refrigerator and pays the company to have it delivered. While the contract covers both a good and a service, this tr
Dominik [7]

Answer:

Article 2 of the UCC(Uniform Commercial Code).

Explanation:

UCC is said to be an acronym which stands for the Uniform Commercial Code; this is seen also to govern many different forms of contract interactions. Article 2 in most cases are seen to cover common issues ranging from

i). Goods definition of i.e any tangible item that can be moved.

ii). Situations involving missing terms in a contract, such as a missing quantity, price etc.

iii) Contract modifications and lastly

iv). Exchanges of consideration for items of value.

Alot of research has shown in most cases that article 2 is a popularly cited provision in this body of statutes, since it governs contracts for the sale of goods between merchants or between a merchant and a non-merchant.

3 0
3 years ago
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