Answer:
The firm's cost of preferred stock is 9.10%
Explanation:
The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)
The dividend per year is $8
The adjusted price of the stock=$92.50*(1-f)
where f is the flotation cost in percentage terms i.e 5%
adjusted price of the stock is =$92.50*(1-5%)=$ 87.88
Cost of preferred stock=$8/$87.88*100 = 9.10%
Answer:
The expected price after 1 year would be$55.5
Explanation:
According to the given data,
Price of the stock (Po) = $50
Dividend after 1year (D1) = $2
Equity cost of capital (KE) =15%
The formula for calculating the price after 1 year i.e.,(P1 ) is
Po = (D1 + P1 )/ 1+KE $50= ($2 + P1) / (1+0.15)
P1 = [$50(1.15)] - $2 = $55.5
Answer:
In economics, the resource that encompasses the natural resources used in production. ... Land was considered to be the “original and inexhaustible gift of nature.” In modern economics, it is broadly defined to include all that nature provides, including minerals, forest products, and water and land resources.
Answer:
b-the costs incurred to process the units to this point
Explanation:
Since in the question it is given that the company want to decide whether to sell partially completed goods or should incurred extra cost in order to finished the goods and sells them as a completed unit
So there should be the decision regarding selling price for the units that are completed, the selling price for the units that are partially completed and the cost i.e to be incurred for finishing the units
Answer:
Synergy.
Explanation:
Synergy is the benefit that results when two or more agents work together to achieve something in a fruitful way, like the increased customer value, which either one could not have achieved on its own. It is the concept of the whole being greater than the sum of individual effects.
