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:
25%
Explanation:
Given:
Seth has a monthly income of $2,500
He has a $400 car payment
He owes $225 on electronic equipment.
Question asked:
What is the percentage of Seth's income he is paying out in debt payments?
Solution:
He has a car payment = $400
He owes on electronic equipment = $225
<em>These two items are treated as debt for Seth as these items are used first then pay for it.</em>
Total debt = $400 + $225
Total debt = $625
Now, we will find percentage of Seth's income he is paying out in debt payments,


Therefore, 25% of Seth's income he is paying out in debt payments.
Answer:
Option E Price Escalation
Explanation:
Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.
Question Completion:
Options:
a. There must be at least two parties.
b. Each party is free to accept or reject the exchange offer.
c. Each party believes it is appropriate or desirable to deal with the other party.
d. Each party has something that might be of value to the other party.
Answer:
c. Each party believes it is appropriate or desirable to deal with the other party.
Explanation:
Criteria C is the criteria that will most directly relate to Deon's cancellation of the sponsorships. Business deals and relationships cannot be established or allowed to subsist when it becomes inappropriate or undesirable to deal with the other party because of controversial activities. This is more so when the activities involve political and social justice beliefs and differences. Ordinarily, business partners should not allow such personal prejudices to becloud their relationships. The best approach, therefore, is for business partners to keep their political and social justice beliefs personal and not make them public issues.