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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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The academic calendar for a university is August 15 through May 15. A professor commits to a contract that binds her to a teachi
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A. Will be the nine month period between August 15 and May​ 15; any time period longer than this will be long run for her.

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For a business to continue, money must be available to finance future growth. <br> t or f
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4 0
3 years ago
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The
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Answer:

Roanoke Company

The standard direct materials cost per bar of chocolate is:

= $0.33.

Explanation:

a) Data and Calculations:

A batch of chocolate = 1,827 bars

Standard Costs for a batch:

Ingredient   Quantity      Price

Cocoa          600 lbs.    $0.40 per lb.

Sugar            180 lbs.    $0.60 per lb.

Milk              150 gal.      $1.70 per gal.

Ingredient   Quantity      Price                 Total Cost

Cocoa          600 lbs.    $0.40 per lb.      $240.00 (600 * $0.40)

Sugar            180 lbs.    $0.60 per lb.         108.00 (180 * $0.60)

Milk              150 gal.      $1.70 per gal.     255.00 (150 * $1.70)

Total cost of batch of chocolate =         $603.00

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