1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fenix001 [56]
3 years ago
5

JPR Company's preferred stock is currently selling for $28.00, and pays a perpetual annual dividend of $2.00 per share. Underwri

ters of a new issue of preferred stock would charge $3 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock for JPR.
Business
1 answer:
scoundrel [369]3 years ago
7 0

Answer:

8%

Explanation:

Data provided in the question

Current selling price of the preferred stock = $28

Annual dividend = $2 per share

Flotation cost = $3 per share

Firm tax rate = 40%

So by considering the above information, the cost of new preferred stock is

= Annual dividend per share ÷ (Current selling price of the preferred stock - Flotation cost)

= $2 ÷ ($28 - $3)

= $2 ÷ $25

= 8%

We simply applied the above formula so that the cost of preferred stock could arrive

You might be interested in
Because services are __________, it is often difficult for marketers to convey the benefits to consumers.
muminat

Because the services are intangible, it is often difficult for the marketers to convey benefits to consumers.

<h3>Who is a marketer?</h3>

A marketer is someone who advertises the goods and services of an organization. They identify the tactics that can increase revenue and sales while making sure that these tactics are in line with both customer and market need. Now that we are aware of what a marketer is, let's examine their function. Let's first examine the function that a marketer does before delving into the importance of marketing for firms. The financial success of any firm can be determined by the marketer's ability to sell. They make sure that the goods and services are promoted effectively enough to sustain demand. Long-term brand equity and improved consumer experiences are enhanced by imaginative and creative marketers.

To learn more about marketing. visit

brainly.com/question/13414268

#SPJ4

5 0
1 year ago
I visited the pet store last week and found two kinds of pets for sale: rabbits for $5 and parakeets for $9. If I had $14 to spe
Elan Coil [88]

Answer:

$31

Explanation:

Starting from number 25, number 26 is a possibility, but then you get number 31 which is larger. Then the following numbers all show a possible combination:

<u> N°        9's                 5's </u>

25       0                    5

26

27       3                    0

28       2                    2

29       1                     4

30       0                    6

31        -                    -

32       3                   1

33       2                   3

34       1                    5

35       0                   7

36       4                   0

37       3                   2

38       2                   4

39       1                   6

40       0                  8

41        4                  1

42       3                  3

43       2                  5

44       1                   7

45       0                  9

A pattern starts to show 35-39 ; 40-44 and so on.

5 0
3 years ago
Alex owns an event management company. His customer service strategy should______ focus on valuing customers for the growth of t
grigory [225]

Answer:

The correct answer is: "D. Both external and internal".

Explanation:

The only possible answer to fill in the space is letter D because it is reasonable to think that a company should focus both on external and internal values for customers in order to make it grow for both parts. As it is an event management company, it is very important to highligh the external demands and how they come and go with clients, agencies, and subsidiaries, while the company must take care of their internal customers who are more responsable for maintaining their strategy going on properly.

6 0
3 years ago
Hayleah is a california cpa practicing in california. to renew her license in active status, hayleah must to meet the basic requ
kenny6666 [7]

When performing work, there are specific requirements depending on which work Hayleah performs and these are <u>B) </u><u>Government </u><u>auditing </u><u>continuing education </u><u>requirement</u>

When dealing with governmental accounting:

  • There are certain rules that must be followed.
  • The specific rules imposed are to ensure better management of tax payer funds.

As a result, when a California CPA is involved in governmental work, specific rules known as the government auditing continuing education requirements will most likely apply.

In conclusion, option B is correct.

Find out more about different accounting standards at brainly.com/question/24441480.

7 0
2 years ago
Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments
Sonbull [250]

Answer:

B. 4 years

Explanation:

As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.

Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period

So, in the given situation, the payments would be received for

= 10 years - 6 years

= 4 years

Hence, the correct option is B. 4 years

6 0
3 years ago
Other questions:
  • Snow blowers are sold in areas where there is a longer cold season and the likelihood of snow. the consumer market for snow blow
    14·1 answer
  • Mike Hansen has adjusted gross income of $82,000. During the year, Mike decided he needed a larger home. He purchased a home on
    7·1 answer
  • 2) The costs of direct materials are classified as: B) C) D) A) Choice A B) Choice B C) Choice C D) Choice D Conversion cost Yes
    14·1 answer
  • Before you could train as a physician, you first had to become _____.
    11·2 answers
  • An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $
    7·1 answer
  • The ______is a financial statement detailing a firm's assets, liabilities, and owners' equity.
    9·1 answer
  • During a severe recession Congress passes legislation to cut taxes, this would be an example of a(n): g
    15·1 answer
  • Kirov, Inc. reports credit sales of $200,000 for the year ending December 31, 2015. The year- end unadjusted balance of its Allo
    14·1 answer
  • When did the FBI establish?
    7·2 answers
  • Early access to medical care, from ems through reperfusion, improves overall outcomes by:________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!