We can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time. But we need to do a small adjustment for floatation cost. Following formula can be applied:
Cost of preferred stock = Annual Dividend / (Price x (1- flotation cost %))
= 8.50 / ( 97.50 x (1- 0.04))
= 8.50/93.60
= 9.08%
Answer:
managers become more specialized, enabling them to become more productive
Explanation:
Economies of scale is defined as the benefit a company gains by producing at a larger scale. This can result in increased profit because of lower cost per unit input used, use of technology to increase productivity, borrowing of money at lower interest rate.
When a company increases scale of production managers tend to be more specialised and this increases their effiency and productivity in that aspect. This improves overall productivity in the company
Answer:B. Affective; continuance
Explanation: Affective Commitment is an emotional attraction of an individual to an organisation,this emotions attraction can be as a result of certain perception that the individual have about the organisation.
Continuance commitment is stern used to describe the need for individuals to want to stay in an organisation because they believe that leaving will cost them a lot, continuance commitment will make them after judging the pros and cons.
Answer:
Refinance and Consolidate
Answer:
The Buick and the second property.
Explanation:
The community property law states that income earned by either of spouse during the marriage or all the property purchased with those income during the marriage are equally owned by both husband and wife. These income and property are considered as community property.
Community property law distinguishes real and personal property into categories of separate and community property. Separate property belongs to one spouse; community property belongs to both spouses equally. Separate property is that property which is acquired prior to the marriage, by gift or inheritance.
Similarly, during the marriage debt is also equally shared by the spouse.