Answer:
The cost of newly issued preferred stock to the firm is 5.82%
Explanation:
Annual dividend = $25 * 6% = $1.5
Present price = $28
Flotation costs = 8% = 8/100 = 0.08
Cost of new stock = Annual dividend / [Current price(1 - flotation costs)]
Cost of new stock = 1.5 / [ 28(1 - 0.08)]
Cost of new stock = 1.5 / [ 28(0.92)]
Cost of new stock = 1.5 / 25.76
Cost of new stock = 0.0582
Cost of new stock = 5.82% (Approx).
<span>Net Income After Tax = Net Income Before Tax - Tax
Net Income Before Tax = 170,000-75,500-10,200+(16,500*0.0725)=85,496.25
Tax = 0.35*Net Income Before Tax=0.35*85,496.25= 29,923.69
Net Income After Tax = 85,496.25- 29,923.69 = 55,572.56</span>
Answer:
Production
Explanation:
Production turns inputs such as raw materials, human resources into outputs.
Answer:
More than $1500 price per car per month has to be dropped.
Explanation:
Given:
price per car = $20,000
car sale per month = 40
rate of increase in demand = 3
Solution:
Revenue R = Price × Quantity = P * Q
From the above given data
P = 20,000
Q = 40
R = P*Q
dQ/dt = 3
We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.
R = P*Q
dR/dt = (dP/dt)Q + P(dQ/dt)
= (dP/dt) 40 + 20,000*3 < 0
= (dP/dt) 40 < 60,000
= dP/dt < 60000/40
= dP/dt < 1,500
Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.
You have to find your local SSA
