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atroni [7]
3 years ago
10

The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share. What is the firm's cost of preferred s

tock if the tax rate is 21 percent and the par value per share is $100?a.12.79 percentb.11.21 percentc.11.46 percentd.10.55 percente.10.77 percent
Business
1 answer:
Luda [366]3 years ago
3 0

Answer:

e. 10.77 percent

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of preferred stock = Annual dividend paid ÷ Price of preferred stock per share

= 0.07 × $100  ÷ $65

= 10.77%

Simply we divide the annual dividend after considering the par value per share by the price of preferred stock per share so that the correct cost of preferred stock can be computed

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Answer:

True

Explanation:

Contracts should be in writing because this guarantees that all the terms of the agreement are documented and the responsabilities of each party are stated. Also, contracts that involve the sale of goods with a value higher than $500 have to be in writing to be enforceable. So, according to this and considering that the total cost of the lighting is $5,000, it is true that the contract needs to be in writing.

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3 years ago
Suppose your firm receives a million order on the last day of the year. You fill the order with million worth of inventory. The
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Answer:

a. Revenues - These will increase by $5 million to represent the entire value of the order.

b. Earnings. - Increase by $3 million

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3 years ago
Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer pu
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Explanation:

1. The journal entry is as follows:

On March 1

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       To Cash A/c $36,000

(Being the prepaid insurance is recorded for cash)

For recording the advance purchase of insurance, we debited the prepaid insurance and credited the cash account. Both the accounts are recorded at $36,000 so that the proper posting could be done.

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3 years ago
Who is the best image retouching service provider?
yawa3891 [41]

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Explanation:

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2 years ago
Delivering health care goods and services requires several inputs, in economic terms. These inputs can be classified as either Q
Elina [12.6K]

Delivering healthcare goods and services requires several inputs in economic terms these inputs can be classified as either <u>labor</u><u> </u>or non-labor.

<h3>What are non-labor inputs?</h3>

Speaking from the perspective of the factors of production, on one hand, non-labor inputs refers to such inputs as:

  • Energy
  • Land
  • Capital
  • Information etc.

The amount of labor input is calculated as either the number of employees or the number of hours they put in during a specific time period, such a year.

The majority of nations gather information on the number of employees and are able to compute labor productivity as output per employee.

Learn more about labor inputs:
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