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frosja888 [35]
3 years ago
14

Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual divi

dend equal to 15.0% of par. The company believes that the market value of the stock would be $576.00 per share with flotation costs of $52.00 per share. The firm's marginal tax rate is 40%. What is the firm's cost of preferred stock?
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

28.63%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of the preferred stock = Dividend ÷ Price of the stock

where,

Dividend is

= $1,000 × $15%

= $150

And, the price of the stock is

= Market value of the stock - flotation cost

= $576 - $52

= $524

So, the cost of preferred stock is

= $150 ÷ $524

= 28.63%

We ignored the marginal tax rate i.e 40%

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Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
Alex17521 [72]

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the  value of cost  what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples  on the 3 acres and 60 oranges at  on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

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3 years ago
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Answer: A. Developing a product that is easy to use and meets a customer’s needs.

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Answer:

$13,000

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Answer:

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