Answer:
10%
Explanation:
Cost of preferred capital=dividend per share/Par value of preferred capital
=$2/$20=10%
We take issue price of preferred stock for the sake of working cost of capital.
The reason why it is difficult for Rivals to challenge atlas
door is probably because of the high threat of substitutes in which the rival
fears that the atlas door will replace them and send them off out of the
business when they are overpowered by the other party.
Answer:
Fair price of the insurance policy is $62,500.
Explanation:
We have given that an investment that will pay you and your heirs $5000
So the annual cash flow = $5,000
It is given that you can earn 8 % annually on your money
Required rate of return = 8%
We have to find the fair price for the investment
Price of this annuity 
Fair price for the investment is $62,500.
Answer:
False
Explanation:
Budgeted of factory overhead cost = $600,000
Budgeted machine hours = 100,000 hours
Budgeted units to be produced = 200,000 units
Zorn's plantwide factory overhead rate:
= Budgeted of factory overhead cost ÷ Budgeted units to be produced
= $600,000 ÷ 200,000
= $3 per unit
Therefore, the answer given in question is false.
