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yanalaym [24]
3 years ago
15

Milton Corporation gives the preferred stockholders an annual dividend of $5 per share. Each share of stock sells for $100 and s

elling costs of $3. What is the company's cost of preferred stock
Business
1 answer:
LuckyWell [14K]3 years ago
5 0

Answer:

Milton Corporation

The company's cost of preferred stock is:

= 5.2%.

Explanation:

a) Data and Calculations:

Annual dividend per share = $5

Selling price of preferred stock = $100

Flotation cost per share = $3

The Company's cost of preferred stock, using the flotation cost is = Dividend per share/(Selling price - Flotation cost per share)

= $5/($100 - $3)

= $5/$97

= 0.052

= 5.2%

If the flotation cost was not incurred in the current period, the cost of preferred stock will be = $5/$100 = 0.05 = 5%

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Answer:

See explaination and attachment

Explanation:

Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.

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See attachment for the step by step solution of the given problem.

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3 years ago
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Pure competition simply means a market that's has a wide range of competitors who are selling the same products.

Your information is incomplete. Therefore, an overview of pure competition will be given. In pure competition, all the companies sell identical products.

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2 years ago
How does Alibaba implement competitive pricing strategy in market?
laila [671]

Answer:

<u>By reducing their prices compare to the price of their competitors.</u>

Explanation:

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6 0
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You recently purchased a stock that is expected to earn 22 percent in a booming economy, 11 percent in a normal economy, and los
UkoKoshka [18]

Answer:

Return on stock will be 12.65%

So option (c) will be the correct option

Explanation:

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