Answer:
The cost of the preferred stock, including flotation is 11.31%
Explanation:
In order to calculate the cost of the preferred stock, including flotation we would have to use the following formula:
cost of the preferred stock= <u>Annual Dividend</u>
Price×(1-Flotation Cost)
cost of the preferred stock=<u> $11 </u>
$108×(1-10%)
cost of the preferred stock=<u> $11 </u>
$97.20
cost of the preferred stock=11.31%
The cost of the preferred stock, including flotation is 11.31%
Answer:
Before-tax income $ 11,252,000
Less: Deduction for state income tax(529000+451000) $ 980,000
Taxable Income $ 10,272,500
Tax rate 21%
Federal income tax $ 2,157,225.00
Mesa’s combined tax rate
= ([$980,000 state tax + $2,157,225 federal tax] ÷ $11252000) 27.88%
Explanation:
Answer: $618,000
Explanation:
From the question, we are informed that the Fed makes an open market operation purchase of $200,000 and that the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent.
We first have to calculate the money multiplier which will be:
= (1 + the currency drain ratio)/( the currency drain ratio + the reserve ratio)
= (1 + 33.33%)/(33.33% + 10%)
= ( 1 + 0.33)/(0.33 + 0.1)
= 1.33/0.43
= 3.09
The quantity of money increase will be:
= 3.09 × $200,000
= $618,000
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
It means exchange for good or service without using any money