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worty [1.4K]
3 years ago
14

A company's perpetual preferred stock currently trades at $87.50 per share, and it pays an $8.00 annual dividend. If the company

were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock?
a. 8.25%
b. 9.14%
c. 8.69%
d. 9.62%
Business
1 answer:
exis [7]3 years ago
5 0

Answer:

9.62%

Explanation:

The firm cost of preferred stock can be calculated as follows

Dividend= $8

Price= $87.50

Floation cost= 5%

= 5/100

= 0.05

= 8/87.50(1-0.05)

= 8/87.50(0.95)

= 8/83.125

= 0.0962×100

= 9.62%

Hence the firm cost of preferred stock is 9.62%

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Answer:

las alianzas se convierten en estrategias para generar mayor beneficio y crear valor social en diversos problemas del ambito social y ambiental, las cuales aportan a nuevas soluciones o pequeñas ayudas para aquellos problemas.

Explanation:

4 0
2 years ago
What are some positive ways you can impact your Family Circle?
Genrish500 [490]

Answer: Ask questions, help them, or do something they love

Explanation:

Some of the positive ways of impacting ones family circle is by asking questions, helping other members of our family and by doing something that they love.

We shouldn't be self centered by showing them what we love such as our favorite music, movies, and TV shows. Rather, we should listen to them and give them listening hears and always help them when there is need for our help.

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3 0
2 years ago
The Phoenix Suns decide to increase their ticket prices for next season. We might expect revenue will rise due to the higher pri
vaieri [72.5K]

We might expect revenue will rise given that Phoenix is a large city.

<h3>What is a revenue?</h3>

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Because Phoenix Suns decide to increase their ticket prices for next season, then, we might expect revenue will rise given that Phoenix is a large city.

Therefore, the Option B is correct.

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5 0
2 years ago
Golden Enterprises started the year with the following: Assets $107,000; Liabilities $37,000; Common Stock $67,000; Retained Ear
Tema [17]

Answer:

$3,650

Explanation:

Given that,

Assets = $107,000;

Liabilities = $37,000;

Common Stock = $67,000;

Retained Earnings = $3,000

Amount of net income:

= Revenue - Expenses

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Closing retained earnings:

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= $3,000 + $2,350 - $1,700

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Therefore, the Golden's retained earnings at the end of the year is $3,650.

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3 years ago
What is confidential information​
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Information that is top secret vip your eyes only

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2 years ago
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