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matrenka [14]
3 years ago
14

A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% ba

sed on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.50 per share. The company's marginal tax rate is 40%. Therefore, the cost of preferred stock is
Business
1 answer:
scZoUnD [109]3 years ago
3 0

Answer:

Answer:

Dividend (D) = 4% x $100 = $4

Current market price (Po) = $18

Flotation cost (FC) = $1.50

Tax rate (T) = 40% = 0.40

Kp =   <u> D </u>

       Po-FC

Kp =   <u>  $4 </u>

        $18-$1.50

Kp = <u>$4 </u>

      $16.5

Kp = 0.24 = 24%

Explanation:

Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.

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Soft drink sales are declining as more consumers are concerned about their health. This represents a change in the __________. A
Firlakuza [10]

Answer:

product concept

Explanation:

The definition of the product concept implies that customers prefer goods that have higher quality, price, and functionality than a standard product. In some niche markets such as computers and mobile phones, the definition is really true.

The product concept relates to a compulsory philosophy to provide the consumer with the best model possible according to need and requirement. A product is not sufficient on its own and needs the performance of many other market aspects such as advertising, shipping, sales, operation, etc.

6 0
3 years ago
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, t
Anvisha [2.4K]

Answer:

Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.

Explanation:

The given problem seems to be incomplete. Find the attachment of the complete question below.

Given:

Direct material,

= $8.70  

Direct labor,

= 24.70  

Overhead,

= 43.50

Now,

If the offer is accepted, the cost per unit will be:

= 44.45 + (43.50\times 70 \ percentage)

= 44.45 + 30.45

= 74.90 ($)

Thus the above is the correct answer.

6 0
3 years ago
You have a standard practice of displaying all student work in your classroom. Recently, you assigned students to write any essa
Tresset [83]

Answer:

The first amendment involves the freedom off free scheech and religion. Meaning that a person can not criticize or not display a person's religion based on your own beliefs or beliefs of others.

Explanation:

Reference possibilities could be

1. http:/guides.library.harvard .edu/

2. Your state website ie Maine.gov mass.gov

3. USA.gov is the federal law

4. Loc.gov is the library of congress

5. 6. Supremecourtus.gov and supremecourts

Gov/opinions for us Supreme Court and recent opinions

7. Law.cornell.edu/citation for legal citations for legal arguments if needed as well as taking the citation out of the address bar to use for finding the law online

8. Http.thelawdictionary.org for legal terms or the black law dictionary

Be cautious of commercial websites some that are good and can give information that is not completely accurate.

C1. Findlaw.com

C2. Lexisone.com for federal and state cases and statutes

Both are used for general information.

Good luck.

5 0
3 years ago
Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,0
Evgen [1.6K]

Answer:

$60,000

Explanation:

According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.

And,  For this, the asset should be depreciated real property.

In the question, there is depreciation charged for apartment building so the same is eligible

The eligibility is allowed up to $60,000 and the same is to be considered

8 0
3 years ago
You own a coffee shop where a cup of coffee sells for $2.99. Your cost on the cup of coffee is $0.90. Calculate the margin
Pepsi [2]

Answer:$2:09

Explanation:  If you subtract the 2 you will get your answer! :)

(Sorry I just read the question wrong)

3 0
3 years ago
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