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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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1 year ago
. Assume you are participating in your employer's direct deposit program. On payday, the employer deposits your ________ into yo
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On pay day, the employer deposits your NET SALARY into your bank account.
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7 0
3 years ago
The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with constant output levels,
Andrei [34K]

Answer:

The correct answer is "nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices."

Explanation:

The real GDP growth is the value of all goods produced in a given year; nominal GDP is the value of all the goods taking price changes into account.

The nominal GDP is the value of all the final goods and services that an economy produced during a given year. It is calculated by using the prices that are current in the year in which the output is produced. The nominal GDP takes into account all of the changes that occurred for all goods and services produced during a given year. For example, a nominal value can change due to shifts in quantity and price.

The real GDP is the total value of all of the final goods and services that an economy produces during a given year, accounting for inflation. It is calculated using the prices of a selected base year.

The correct answer is "nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices."

7 0
3 years ago
Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years.
nikdorinn [45]

Answer:

3482.12

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = net income + depreciation = 16,200 + 3300 = 35,700

($56,100 - $7500) / 3 = 16,200

Cash flow in year 0 = 56,100

cash flow in year 1 and 2 = 35700

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3 0
3 years ago
Intro to Investing Math Quiz
olga nikolaevna [1]

As a result of having increased from a price of $55 to $85, we can say that the stock value increased by<u> 54.55%</u>

The stock was valued at $55 then it increased to $85. First thing to do is to check how much it increased by in dollar terms:

<em>= New price - old price </em>

= 85 - 55

= $30

In percentage terms, this is:

<em>= Increase/ Old price x 100%</em>

= 30 / 55 x 100%

= 54.55%

In conclusion, the stock value increased by 54.55%

<em />

<em>Find out more at brainly.com/question/10273187.</em>

4 0
3 years ago
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