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docker41 [41]
2 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]2 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.

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Aaron purchased 500 shares of KMP stock on May 8. On May 16, he purchased another 200 shares and then on May 20 he purchased a f
UkoKoshka [18]

Answer:

Steve will receive $752 dividend income on June 12.

Explanation:

=> Dividend is declared on May 6 to holders of record on Friday, May 22.

=> Aaron shares purchased before May 22 are:

500 shares on May 8

200 shares on May 16

100 shares on May 20

∴ 800 shares  in total

Aaron is having Total 800 Shares as on May 22. So he will receive Dividend for 800 shares.

since Dividend per share = $0.94 , therefore

Total Dividend = 0.94 x Total share ==> 0.94 x 800  

Total dividend = $752

4 0
2 years ago
Arby's builds a new restaurant on the same street as burger king and mcdonalds. what principle of value does this illustrate?
Anit [1.1K]
<span>This demonstrates of the principle of competitiveness. Every company wants a 'piece of the pie'. If this street is located in a high traffic area, then Arby's is giving McDonald's and Burger King some good old fashioned competition.</span>
8 0
2 years ago
Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company
Snowcat [4.5K]

Answer:

Total incremental net income = $28,000

Incremental per gallon increase in net income = $0.70 per unit

Explanation:

a. The preparation of incremental statement to find out the increase in net income

Total production                                  $140,000

Less:

Incremental cost

Direct material              $68,000

($1.70 × 40,000 gallons)

Direct labor                  $24,000

($0.60 × 40,000 gallons)

Variable manufacturing

overhead                     $20,000

($0.50 × 40,000 gallons)

Total incremental cost                      ($112,000)

Total incremental net income          $28,000

b. Incremental per gallon increase in net income = Total incremental net income ÷ Total quantity

= $28,000 ÷ 40,000 gallons

= $0.70 per unit

Therefore the total incremental net income is $28,000 and incremental per gallon increase in net income is $0.70 per unit.

5 0
2 years ago
The idea for "price profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by
egoroff_w [7]

Answer: Copyright law

Copyright is security for tangible aspects of an idea. It is intended to give the creator of something original the ability to use and make money from it, without others being able to use it themselves. There are a number of limitations that do allow for a widespread use, they protect the derivatives of an idea also called intellectual property. Copyright tends to cover literary and artistic work e.g. books, movies. To get a better idea copyright is the reason you just can’t print and sell harry potter books or download pirated movies

Since the "<em>price profit"</em> app is an idea it is protected by the copyright law.


7 0
2 years ago
Read 2 more answers
Identify five basic causes of the environmental problems that we face today. What is poverty? In what ways do poverty and afflue
Orlov [11]

Answer: These can be explained as follows :-

Explanation: A.Causes of environmental problems :-

1. Urbanization

2. Deforestation

3. Overpopulation

4. Waste production

5. Industrialization

B. Poverty means a state of an individual in which he is not able to fulfill his or her basic necessities of life.

Usually poor people are not well educated and are not very ware about the cleanliness around them, they pollute rivers, forest and other natural resources.

The wealthy folks on the other hand, demand more goods and services leading to exploitation of natural resources.

C. People in toady's time period are not very aware about the environmental problems occurring due to heavy consumption of certain goods, inclusion of environment cost will lead to consumer awareness and it might work for the betterment of earth.

7 0
2 years ago
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