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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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A(n) _____ is a variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the prospe
Studentka2010 [4]

Answer: Introduction

Explanation:

In discipline such as marketing , an introduction is referred to as or known as a variation or change of the referral where, an addition made to the requesting names of the prospects, the individual or the salesperson tends to asks the prospect consumer or the customer in order to prepare a letter or note that can be further sent to potential consumer or customer.

3 0
4 years ago
L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia
Arlecino [84]

Answer:

<em><u>It would generate a financial disadvantage for 62,800</u></em>

Explanation:

\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]

It would generate a financial disadvantage for 62,800

Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.

5 0
3 years ago
1. You have been asked to appraise the market value of a three-bedroom house with two bathrooms that is going to be sold tomorro
Elan Coil [88]

Answer:

Current price of house = $222,000

Explanation:

given data

property that sold = $275,000

values decreasing at rate = $2,000 per week

Each bedroom = $30,000

a bathroom  = $15,000

solution

we get here Price of 3 bedroom & 3 bathroom house (4 weeks ago) is

Price of 3 bedroom & 3 bathroom house (4 weeks ago) = $275,000 - $30,000 - $15,000

Price of 3 bedroom & 3 bathroom house (4 weeks ago)  = $230000

and

reduction in price at $2000 per week for 4 weeks= 4 × 2000

reduction in price at $2000 per week for 4 weeks = ($8,000)

so

Current price of house = $230000 - $8,000

Current price of house = $222,000

8 0
3 years ago
Labor costs are 30% of sales. Other operating costs are $38,000 per month (including $10,000 of depreciation). Both of these are
Alina [70]

$14,000 rupees will be disbursed totally in march.            

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  • At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
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3 0
3 years ago
Match the following characteristics with their relevant project team organizational structures. The project is housed within a f
Rasek [7]

Answer:

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B. Functional project Personnel work on a dedicated project team = Team pride, motivation, and commitment are high.

C. Matrix project A team member reports to two bosses = The project is housed within a functional division of the firm.

Explanation:

For A answer, this kind of project management conducts the people, to work on a multitasking way, because they have to accomplish the responsibilities on their functional area as the same that they must accomplished their responsibilities on the project areas. This can minimized the resources for the project but could impact negatively on the compliment of responsibilities because is the same person for two work fronts.  

For B answer, if the people can focus their efforts only in the project, that creates more interest on reach the goals efficiently than if the team were distributed on functional and projects departments

For C answer, when the project is developed in a functional division of the firm, you, as a team project member, must report to the project manager and your functional area boss.

5 0
3 years ago
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