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
docker41 [41]
3 years ago
8

McDonald's Corp has a preferred stock paying a dividend of $19 and has a market price of $178. Calculate the cost of capital for

the preferred stock.
Business
1 answer:
Iteru [2.4K]3 years ago
3 0

Answer:

McDonald's Corp

The cost of capital for the preferred stock is:

10.67%

Explanation:

a) Data and Calculations:

Market price of preferred stock = $178

Preferred stock dividend = $19

Cost of capital = Preferred stock dividend/Market price of preferred stock * 100

= $19/$178 * 100

= 10.67%

b) The cost of capital for McDonald's preferred stock is the finance cost or interest cost that it must incur for financing its projects using preferred stock.  This represents the 10% of the preferred stock value that is paid out to preferred stockholders.

You might be interested in
How might a technology company like apple ensure that it behaves in a socially responsible way toward its customers? by protecti
Serhud [2]

The correct answer is the first option. By protecting the privacy of personal information collected on its website a company like apple would be behaving in a socially responsible way towards its customers. Technology companies like apple have a responsibility to protect the personal information of its customers, if this wasn't the case then people would not buy their products as they would not have any faith in the company.

7 0
3 years ago
Read 2 more answers
Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of
vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

                                       = $10,100

Depreciation for Year 2 = 0.323 × $50,000

                                       = $16,150

Depreciation for Year 3 = 0.194 × $50,000

                                       = $9,700

Depreciation for Year 4 = 0.125 × $50,000

                                       = $6,250

Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

                                             = $42,200

Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

                                         = $4,700

Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

                                = $1,880

Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

8 0
3 years ago
Kenyon Co. uses the perpetual inventory method. Kenyon purchased 400 units of inventory that cost $6.00 each. At a later date th
olga nikolaevna [1]

Answer:$5600

Explanation:

The FIFO inventory system is an inventory system where the inventory purchased first is the first to be sold.

If 800 units are sold, the inventory sold would be calculated as:

$6 × 400 = $2,400

$8 × 400 = $3200

=$5,600

4 0
3 years ago
quizlet uruguay was the first country in the world to legalize and regulate the production, supply, and recreational use of cann
exis [7]

Uruguay was the primary usa inside the global to legalize and regulate the Production, delivery, and leisure use of hashish. TRUE

Production is the system of manufacturing items and services to satisfy human needs. The product is the end result of the method. The 4 elements of manufacturing are land, capital, labour, and business enterprise. An instance of production is the manufacturing of motors. motors are made by way of assembling elements together. as an example, rubber tires are brought to metal our bodies to make seats installed earlier than the automobile is pushed off the manufacturing line.

“Production is the organized interest of remodeling resources into finished merchandise in the form of products and offerings; the objective of manufacturing is to fulfill the call for such converted sources”.production is one of the most vital procedures inside manufacturing, and is a middle part of what it approaches to be a manufacturer. without this activity, no completed items would be created, and there would be not nothing to promote to clients.

Learn more about Production here:

brainly.com/question/16755022

#SPJ4

8 0
1 year ago
A worker is paid $9.80 per hour, with time and a half for any hours over 40 per week. If he works 44 hours in a week, what will
olasank [31]

Answer:

No of hours worked = 44 hours

Pay per hour = $9.80

Pay for overtime = 9.80/2 = $4.60

Overtime hours = 4

Total Pay = (40 × 9.8) + (4 × 4.6)

= 392 + 18.4 = $ 410.4

Gross pay = $392

3 0
3 years ago
Other questions:
  • Which one of these statements about the service portfolio is correct?
    11·1 answer
  • How does the executive branch interact with the other two branches?<br>​
    10·1 answer
  • Documents in a voucher system
    8·1 answer
  • Name five functions of the BBBEE Commission
    6·1 answer
  • Maynard, Joan, Jaco, and Neil are trying to form a band. They each have some basic skills on most instruments, so their current
    10·1 answer
  • A population gathers plants and animals for survival. They need at least 360 units of​ energy, 300 units of​ protein, and 8 hide
    13·1 answer
  • Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate
    10·1 answer
  • Sela traveled from her home in Flagstaff to San Francisco to seek specialized medical care. Because she was unable to travel​ al
    7·1 answer
  • Alejandro Yago leased a Jeep for $209.00 per month for 60 months.He paid a deposit of $850.00, a title fee of $45.00, and a lice
    12·1 answer
  • In a perfectly competitive industry rev: 06_26_2018 Multiple Choice economic profits may exist in the long run but not in the sh
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!