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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 and Explanation:

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Here, the goal of information management is to identify the requirement of the information for various management levels so that it can be used in appropriate manner.

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he condensed balance sheet and income statement for Marjoram Company are presented below. MARJORAM COMPANY Balance Sheet At Dece
Juliette [100K]

Answer:

current ratio  for MARJORAM  = Current asset / current liabilities

                                                   =  $173,000/ $108,400

                                                    =  1.59

Explanation:

step 1 :calculate the total current asset of the company which is calculated below.

current asset

Cash                         $19,000

Note Receivable         35,000

Account Receivable    48,400

Inventory                    <u>  70,600</u>

Total                         <u> 173,000</u>

Note receivable is included in the current asset because its due date is less than 12 months.

step 2 : divide the current asset by the current liabilites in order to determine the current ratio

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15 points &amp; Brainliest! please show your work first &amp; explain why &amp; how you got it. Alegbra 2 questions!
jasenka [17]
18a.

the y-intercept is the value of the function at x = 0.
so y-intercept is 5/8.

constant multiplier you can find by dividing a y-value by the previous y-value:

(y at x = 1) / (y at x = 0) is
(15 / 32) / (5 / 8)
but dividing by fraction is same as multiplying by reciprocal:

(15 / 32) · (8 / 5) ⇒ (15 · 8) / (32 · 5) ⇒ (3 · 1) / (4 · 1) = 3/4
(since 15 and 5 cancel to 3 and 1; 8 and 32 cancel to 1 and 4

the constant multiplier is 3/4 (you can confirm by repeat multiplying the y-values by 3/4 to get the next one)

18b.

y-intercept is 0.01

constant multplier:

(y at x = 1) / (y at x = 0) = 0.1 / 0.01 = 10

constant multiplier is 10

18c.

y = m/n(o/p)^x

y intercept is at x = 0:
y = m/n(o/p)^0
since anything to power of 0 is 1, we are left with
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y-intercept is m/n.

The constant multiplier is o/p

i don't really have news papers or magazines around for that last bit, but if you could look for population data and such they can be exponential.



7 0
3 years ago
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