Answer:<em> </em><em>Therefore, the cost of preferred stock is </em><em>17.72%.</em>
Given:
Selling price (preferred stock) = $21
Annual dividend = 3.5%
Flotation costs = $1.25
We can compute the cost of preferred stock as:
![cost \ of \ preferred \ stock = \frac{annual \ dividend}{( Price\ of \ stock - Flotation\ costs )}\\](https://tex.z-dn.net/?f=cost%20%5C%20of%20%5C%20preferred%20%5C%20stock%20%3D%20%5Cfrac%7Bannual%20%5C%20dividend%7D%7B%28%20Price%5C%20of%20%5C%20stock%20-%20Flotation%5C%20costs%20%29%7D%5C%5C)
Cost of preferred stock = 3.5 / ($21 - $1.25)
Cost of preferred stock = 17.72%
<u><em>The correct option is (b)</em></u>
Answer:
558
Explanation:
Since his monthly salary is $9,000
6.2% is the percentage of his salary that he will pay as social security tax while the Employer pays the other 6.2% making 12.4% in total
The amount to be taken out of his salary for social security for the month of December will be
6.2% * 9000= $558
Answer: A. 20%
Explanation:
The expected return takes into account whatever dividends and capital gains accrue to a stock over the period.
Expected return = (Price at end of period + Dividends - Price at beginning of period) / Price at beginning of period
= (114 + 6 - 100) / 100
= 20/100
= 20%
Answer:
wholesalers, distributors and manufacturers.
Explanation:
Answer:
The correct answer is True.
Explanation:
The production possibilities frontier (FPP) is a graphic representation of the maximum quantities of production that an economy can obtain in a given period using all the resources it has available.
In an economy that has thousands of products, the alternatives to produce one good or another and how much of each are very large. When an alternative is chosen, it means that other possibilities are being renounced. The relationship between what we choose and what we give up is the opportunity cost.
In this case, two activities are listed that cannot be executed as much as possible, because there is the time factor which directly determines the trend if one of the two activities (work or study) is chosen. If the first one is chosen, the second one will be harmed, and vice versa.