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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

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<h2>Lean Production Perspective</h2>

Explanation:

There are 6 Business management perspective. They are:

  1. An ethics perspective
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  3. Enterprise risk management
  4. Corporate social responsibility perspective
  5. A process management perspective
  6. A leadership perspective

Here the Lean production perspective does not come under the business management perspective.

Lean production actually deals with cutting down of waste and whilst ensuring quality. This approach is basically a cost-cutting approach where it brings benefit to the business. This is one of the most efficient methods.

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*internal recruitment

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If each piece of a 10 piece puzzle had a word that represented you on it, what 10 words would we see?
Marysya12 [62]

Answer: brave,strong, funny, short, smart, unique, beautiful, amusing, pretty

Explanation:

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2 years ago
"Imagine you own a successful startup company that’s been doing well for several years. You think you can grow your company if y
Lapatulllka [165]

Answer:

Going from private company to public company

Explanation:

This will help the startup to boost its industry connections and get involved in the redefining the company's future with wider access to finance that comes by listing the organization in stock exchange. Stock exchange provides a pool of investors that are willing to invest in your company.

Going public will give the company wider access to industry, expansion options, suppliers redefining, etc. All this will be possible by the wider industry connections.

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Retained earnings, December 31, 2012 $ 306,800 Cost of equipment purchased during 2013 29,000 Net loss for the year ended Decemb
aksik [14]

Answer:

$288,500

Explanation:

Particulars                                                          Amount

Retained Earnings Dec 31, 2012                      $306,800

Less: Net Loss for the Year                              $4,000

Less: Dividend declared and paid in 2013      <u>$14,300</u>

Retained Earnings Dec 31, 2013                     <u>$288,500</u>

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2 years ago
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