Answer:
The cost of preferred stock is 10.2%
Explanation:
The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.
Having known the net amount realized, the cost of preferred stock can be calculated as follows:
cost of preferred stock =return on preferred stock/net amount realized
return is 10% of $100(par value), i.e $10 per share
cost of preferred stock =$10/$98=10.2%
Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.
Answer: increase in inventory
Explanation:
increase in inventory : An increase in a company's inventory shows that the company bought more goods than it has sold. And the buying of additional inventory requires the use of cash, it means there was an additional outflow of cash. An outflow of cash has a negative effect on the company's cash balance.
Answer:
LaShawn's neighbor mows his lawn during the night.
DEPENDING ON HOW OFTEN LASHAWN'S NEIGHBOR MOWS HIS LAWN, A PRIVATE BARGAINING MIGHT BE USEFUL. IF THIS HAPPENS ONCE A MONTH, THE NEED OF INTERVENTION IS NOT SIGNIFICANT. BUT IF THIS HAPPENS MORE OFTEN, PROBABLY THEN BOTH MEIGHBORS WILL NEED TO BARGAIN AN OPTIMAL SOLUTION.
Opening an Apple store in a mall causes overall sales in the mall to increase by 10%.
THIS IS A POSTIIVE EXTERNALITY, THEREFORE, ANY TYPE OF INTERVENTION WILL PROBABLY MAKE THE SITUATION WORSE.
The production of steel results in pollution that affects millions of residents in the surrounding area.
IN THIS CASE, YOU NEED GOVERNMENT INTEREVENTION. POLUTION IS SOMETHING THAT AFFECTS THE GEENRAL PUBLIC, THEREFORE, IT MUST BE ADDRESSED BY THE EPA. IN CASE THE EPA AND OTHER GOVERNMENT INSTITUTIONS DECIDE TO DO NOTHING, THEN YES, PRIVATE BARGAINING WILL PROBABLY BE NECESSARY.
Answer:
D
Explanation:
I think on its long run average cost,a firm will be producing at it lowest cost price(CP)
A federal budget deficit occurs when federal government purchases exceed net taxes. Option C is correct.
<h3>What is federal budget?</h3>
The federal budget is the budget of the United States. It comprises the federal government's spending and revenues.
The budget is the monetary or medium of exchange expression of the priorities of the government and showing the past conflicts and conflicting economic views.
A federal budget deficit occurs when government spending exceeds revenue, which is the money collected from, fees, taxes and investments. Deficits add to the national debt, or debt owed by the federal government.
Therefore, option C is correct.
Learn more about the federal budget, refer to:
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