Answer:
Cost of preferred stock=7.41
%
Explanation:
<em>A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future.
</em>
<em>A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows: </em>
Cost of preferred stock = D/P(1-f) × 100
D- Preference dividend
P- stock price
F- flotation cost
Preference dividend = Coupon rate × Nominal value
DATA
Nominal value = $65
Stock price = $58.63
Dividend rate=6.25%
Flotation cost = 6.5%
Preference dividend = 6.25%× 65 = 4.063
Cost of preferred stock =(4.063
/58.63×(1-0.065) × 100 = 7.41 %
Cost of preferred stock=7.41
%
Answer:
<em>Acquisition of a subsidiary on January 23, Year 2. Negotiations had begun in December of Year 1.</em>
Explanation:
An entity acknowledges <em>events that occurred in the financial reports which provide data on conditions that exist at the income statement date,</em> including calculations that are inherent in the preparation of the statement.
The holding company's sale did not take place until the end of the year.
Therefore, the transaction only included disclosure of the note, not acknowledgement in the statements.
Answer:
Creative Advertising
Directional Advertising:.
Explanation:
Creative Advertising:
You are spreading your message on a fence, trying to create interest in your service and trying to guide your audience in this way create awareness, need or brand in the market
Directional Advertising:
When placing the ad, "who says that exercising can't be fun? " They are in front of people who really seek your service. Your audience knows what you want, but you don't know who to call