Answer:
taking an inventory of the special equipment, facilities, and systems needed for production.
Explanation:
Lender
which is usually the bank
This was said by Alexander Hamilton in the 1790s in a debate with Thomas Jefferson during the debate of Jefferson vs. Hamilton when Hamilton proposed the National Bank yet Thomas Jefferson was strongly against it.
We can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time. But we need to do a small adjustment for floatation cost. Following formula can be applied:
Cost of preferred stock = Annual Dividend / (Price x (1- flotation cost %))
= 8.50 / ( 97.50 x (1- 0.04))
= 8.50/93.60
= 9.08%
Answer:
According to Tyler the accountant the costs are $25,900 and Greg says the costs are $66,500.
Explanation:
COST AS PER TYLER -
According to Tyler( accountant) , Walters accounting cost will include the expenses which have been incurred on the painting business, so it will include the expenses paid by Walter on supplies and the interest he pays to his uncle.
Accounting cost = $25,000 + $30,000 x 3%
= $25,000 + $900
= $25,900
COST AS PER GREG -
According to Greg (economist) , Walters economic cost will include both the explicit cost and implicit cost. The explicit cost is $25,900 and the implicit cost is the opportunity cost which will include the interest that Walter could have earned on savings account and the salary as a teacher.
Economic cost = $25,900 + $40,000 + $20,000 x 3%
= $25,900 + $40,000 + $600
= $66,500
