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Vladimir [108]
2 years ago
15

Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 4.20 percent that sells for $90.86 per share. I

f the par value is $100, what is the cost of the company's preferred stock?
A) 6.37%
B) 6.15%
C) 6.91%
D) 6.20%
E) 6.11%
Business
1 answer:
natali 33 [55]2 years ago
3 0

Answer:

4.62%

Explanation:

Bethesda had an issue with preferred stock outstanding with a coupon rate of 4.20 %

It is sold at $90.86 per share

The par value is $100

Therefore the company's preferred stock can be calculated as follows

= 4.20/100 × 100 / 90.86/100 ×100

= 4.20/90.86

= 0.0462 × 100

= 4.62%

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Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of b
tatyana61 [14]

Answer: a. rise, the supply of bread to decrease, and the demand for potatoes to increase.

Explanation:

According to the Economic law of SUPPLY AND DEMAND, less supply means HIGHER prices simply because the good is becoming scarce not unlike fuel during global oil shortages.

Now, we are told that the drought reduced the supply for wheat which means the SUPPLY of wheat has DECREASED and this will translate to the SUPPLY of Bread DECREASING as well. According to the aforementioned law, prices of Bread will therefore RISE.

Since Bread prices have risen, people will seek alternatives to bread as they may not want to pay the high price. This will lead them to choosing the alternative to bread which in this case are Potatoes which would therefore INCREASE the DEMAND for potatoes.

3 0
2 years ago
Liability of foreignness is the inherent disadvantage experienced by foreign firms in host countries because of their non-native
gizmo_the_mogwai [7]

Answer:

True

Explanation:

It is an inherent disadvantage that foreign firms experience in the host country because of non-native status. It is considered as liability of foreignness as foreign companies are well versed with the cultural difference, tax policies and people´s response to the product and services produced, therefore foreign companies need to invest resources to learn the technique of business in different country.

To have competitive advantage in the foreign market, the companies should have organized resources, cost to compete and capabilities to offset the liability of foreignness.

8 0
3 years ago
Philadelphia Company has the following information for March: Sales $486,599 Variable cost of goods sold 205,621 Fixed manufactu
egoroff_w [7]

Answer:

Manufacturing margin is $203,253

Contribution margin is $230,357

Net income $118,547

Explanation:

Manufacturing margin is the sales revenue minus manufacturing costs

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

fixed manufacturing cost         ($77,725)

manufacturing margin            $203,253

Contribution margin is sales revenue minus variable costs:

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

variable selling & admin          ($50,621)

contribution      margin            $230,357

Income is the sales revenue minus all costs incurred:

Sales revenue                           $486,599

Cost of goods sold                  ($205,621)

fixed manufacturing cost         ($77,725)

Variable selling & admin          ($50,621)

Fixed selling & admin              ($34,085)

Net income                             $118,547

6 0
3 years ago
Cash Payback Period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM
sashaice [31]

Answer:

Location 1 = 5 years

Location 2  = 4 years

Explanation:

The period in which initial investment is recovered by a business is known as payapack period.

Location 1

Net cash flow = $320,000

Cash Flow per year = $320,000 / 8 = $40,000

Payback period = Initial Investment / Yearly cash flow = $200,000 / $40,000 per year = 5 years

Location 2

As per given Data

Cash Flows

Year1 $60,000    Year2 $50,000

Year3 $50,000     Year4 $40,000

Year5 $30,000    Year6 $30,000

Year7 $30,000    Year8 $30,000

Payback period                  Balance      

Year0 ($200,000)            ($200,000)    

Year1 $60,000                  ($140,000)

Year2 $50,000                 ($90,000)

Year3 $50,000                  ($40,000)

Year4 $40,000                     ($0)

It took 4 year to recoveer the initial investment, so the payaback period is 4 years.

4 0
3 years ago
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larisa86 [58]

Answer:

b. the right to be informed

Explanation:

Consumerism is a movement that aims to protect consumer's interests. The movement promotes truthful packaging, fair trade practices, truthful product guarantees, truthful advertising etc. These attributes will enable consumers to make informed decisions before purchasing products. Based on the above, option b is the correct answer.

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