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vovikov84 [41]
3 years ago
6

A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company

were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock?
Business
1 answer:
Vladimir [108]3 years ago
5 0

Answer:$12.63

Explanation:

The preferred stock is a fund raising mechanism used by a firm to raise fund from the public. A preferred stock can have a fixed rate of dividend and can be cummulative. A preferred stock of such means the firm is oblige to pay the dividend and if it's unable to pay in a particular year then it will added to future years.

The issued price of the stock is a loan to the firm and the cost are the dividend and issuing cost incurred by the firm, in the above scenario the cost of the stock is

(5% of $92.50)+ $8

= $12.63

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Floyd owns a chain of diners. He prefers to recruit employees from different ethnic and cultural backgrounds. When he hires new
zlopas [31]

Answer:

B) awareness training

Explanation:

In this scenario, based on all that Floyd is doing seems as though he is using awareness training on his employees. This is a training technique used to train employees on cultural and ethnic diversity as well as what is appropriate and inappropriate when dealing with different cultures. Like mentioned in the question this also encourages employees to think outside the box and question stereotypes.

8 0
3 years ago
If the quantity supplied by producers is relatively insensitive to price changes, supply is ______. Multiple choice question.
luda_lava [24]

If the quantity supplied by producers is relatively insensitive to price changes, supply is price inelastic.

Inelastic demand is demand for which the change in quantity demanded is small due to changes in price. Demand is elastic if the formula yields an absolute value greater than 1. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic.

For example, consumers are less price relatively insensitive if the product or service is unique or has few alternatives. Consumers are less price sensitive when total costs are low relative to total revenues. The total effort compared to the total cost of the final product also influences price sensitivity.

Learn more about price inelastic at

brainly.com/question/5078326

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<em>Your question is incomplete. please read below to find the full content.</em>

If the quantity supplied by producers is relatively insensitive to price changes, supply is ______. Multiple choice question.

price inelastic.

quantity demanded.

relative price increase.

change in price.

7 0
2 years ago
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.
Gala2k [10]
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
8 0
3 years ago
How does a monopoly's demand for labor shift if a second firm enters its output market and the result is a cournot duopoly equil
shusha [124]

Answer: The demand is shared with the new company that enters the market.

Explanation: The Cournot duopoly is an imperfect competition model, that is, the law of supply and demand is not freely used, in which two companies with equal costs compete with homogeneous goods in a static environment, that is, with the same characteristics.

For example: A leading brand of soda in the market, get a competitor that has the same characteristics. People will prefer one of the two brands and they will always lead the market, but they will have to divide the market.

8 0
3 years ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $127,000.
Brut [27]

Answer:

b. $31,000

Explanation:

The computation of the depreciation expense using the straight-line method for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($127,000- $3,000) ÷ (4 years)  

= ($124,000) ÷ (4 years)  

= $31,000

Hence, the correct option is b. $31,000

The units are to be ignored as the method i.e used is straight line so the same is to be considered

6 0
4 years ago
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