Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, deprec
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Answer:
Cost of preferred stock = 12%
correct option is A. 12 percent
Explanation:
given data
preferred stock = $125 per share
annual dividend = $15
cost of issuing and selling = $4 per share
to find out
cost of the preferred stock
solution
we know that Cost of preferred stock is express as
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost) ...........................1
and we know Flotation cost will be here = = 3.20 %
so
from equation 1 we get
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost)
Cost of preferred stock = $15 ÷ ($125 - 3.20 % )
Cost of preferred stock = 0.120030
Cost of preferred stock = 12%
correct option is A. 12 percent
Answer:
Jake should shear the llamas.
Explanation:
Latasha can shear the llamas in 1 hour.
Jake takes 6 hours to shear the llamas.
Latasha earns $120 per hour as a lawyer, while Jake earns $15 per hour as a barber.
Latasha can either earn $120 in an hour or shear a llama.
In 6 hours Jake can earn either shear a llama or earn
=
= $90
The opportunity cost of shearing llamas is high for Latasha ($120) while, it is lower for Jake ($90). So, Jake should shear the llamas.