The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.
Answer 2 is the best choice
Answer:
28.63%
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of the preferred stock = Dividend ÷ Price of the stock
where,
Dividend is
= $1,000 × $15%
= $150
And, the price of the stock is
= Market value of the stock - flotation cost
= $576 - $52
= $524
So, the cost of preferred stock is
= $150 ÷ $524
= 28.63%
We ignored the marginal tax rate i.e 40%
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