1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Contact [7]
3 years ago
12

Weir inc.'s perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. if the company were to s

ell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. what is the company's cost of preferred stock for use in calculating the wacc? hint: see textbook on how to adjust a stock price for floatation costs; they show it for common shares if not for preferred.
Business
1 answer:
ipn [44]3 years ago
3 0

We can use the PV of perpetuity formula as the dividends will be paid for the infinite period of time. But we need to do a small adjustment for floatation cost. Following formula can be applied:

Cost of preferred stock = Annual Dividend / (Price x (1- flotation cost %))

= 8.50 / ( 97.50 x (1- 0.04))

= 8.50/93.60

= 9.08%

You might be interested in
What are the three main categories of a tax return?
Gennadij [26K]

Answer:

1040, 1040A and 1040EZ

Explanation:

hope this helps

7 0
3 years ago
___________ are actions taken or measures put in place to eliminate a hazard or reduce the associated identified risk. A ) Misha
kherson [118]

Answer:

C ) Controls

Explanation:

According to my research on the different safety features that organizations take in order to deal with hazards and other risks, It can be said that based on the information provided within the question the term being described/defined is called Controls. These are programs consisting of all the steps needed in order to protect employees from different hazards or associated risks.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Crane Company purchased land as a factory site for $1300000. Crane paid $110000 to tear down two buildings on the land. Salvage
Marizza181 [45]

Answer:

a. $‭1,420,000‬

b.  $‭4,514,800‬

Explanation:

When it comes to fixed assets, all costs that directly helped make the asset available for use are to be capitalized.

Cost of Land

= Purchase Value + Cost Incurred to Tear Down 2 Buildings + Legal Fees + Title Insurance Cost + Assessment Cost - Salvage

= 1,300,000 + 110,000 + 5,000 + 3,500 + 9,500 - 8,000

= $‭1,420,000‬

Cost of Building

= Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost

= 46,000 + 3,800 + 15,000 + 4,200,000 + 250,000

= $‭4,514,800‬

4 0
3 years ago
The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Spa
sweet-ann [11.9K]

Answer:

E) Bright: No dominant strategy, Sparkle: Strategy 1

Explanation:

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?

Bright: No dominant strategy, Sparkle: Strategy 1

5 0
3 years ago
Pick an ad that speaks out against drug abuse. Write about the possible primary and secondary effects of this ad on the youth in
weeeeeb [17]

Answer: The National Youth Anti-Drug Media Campaign launched the “Above the Influence” (ATI) ad campaign in 2005. The campaign aims to provide young people with a different perspective on life. The campaign’s primary initiative is to reduce drug abuse among teenagers, not just by telling them about the harmful effects of drugs, but by helping them to counter bad influences (such as peer pressure) and believe in themselves. This campaign used print media, the Internet, television, and radio to communicate its message to teenagers.

The primary effects of this ad campaign on the youth in my locality were in terms of the immediate awareness that the ad’s message created. The campaign focused on improving lifestyles rather than just highlighting the bad effects of drugs, so it was able to connect with its target audience. Another key reason for the campaign’s success was the use of multiple media formats to communicate with the target audience.

An important secondary effect of this ad campaign was that it succeeded in spreading awareness about how peer pressure leads people into drug abuse. The campaign’s partnership with schools and other community groups helped to increase its effect on students in their early teens. Another secondary effect of the campaign was a decrease in the long-term use of marijuana and other illicit drugs among teenagers. The campaign managed to foster a feeling of independence and self-assurance among teens over the years.

The message of this ad campaign is still fresh in my mind. I’m sure it had a lasting effect on many others who heard it because it succeeded in building public awareness about the problem of drug abuse and in promoting a positive lifestyle.

Explanation:I got it of edmentum

3 0
3 years ago
Other questions:
  • If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is un
    9·1 answer
  • Kilian Company's inventory balance at the end of the year does not include $10,000 of inventory that was stored in a separate wa
    13·1 answer
  • Why does mercedes oil change cost so much?
    12·1 answer
  • M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can
    6·1 answer
  • Executives at Southwestern Construction have noticed that the company's construction team in the Phoenix office is more efficien
    11·1 answer
  • Most companies lose money in their first few years of business. True False
    10·2 answers
  • The expected return on the market portfolio is 13%. The risk-free rate is 6%. The expected return on SDA Corp. common stock is 1
    8·1 answer
  • Kevin owns one share of Acme, Inc. stock. He purchased the stock three years ago for $29. The stock is currently trading for $29
    5·1 answer
  • Read the overview below and complete the activities that follow. In addition to trade accounts payable, many companies have othe
    10·1 answer
  • Viral Marketing, Inc. reported last year's cost of goods sold of $120 million. Total assets increased by $50 million during the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!