Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
the advantages of the federally insured account is that
- it's generally safer because it's protected by the Insurance made by the federal government, In case the account is stolen, the government would return the amount,
- It's easier to make joint account if you're married.
The disadvantages is that:
- The interest of a federally insured account usually below the inflation rate. So technically the value of your account would reduced over time.
- it has a maximum amount of $ 250,000. You can put more to the account.
Answer:
The cooperatives help their member to focus their attention on their livestock while the cooperatives work to get the best prices for their products.
Explanation:
Answer:
value we place on this house when analyzing the option of using it as a professional office is $225000
Explanation:
Given data
house cost 4 year ago = $219,000
house valued = $239,000
real estate fees = $14000
property taxes = $4,000
to find out
What value should you place on this house
solution
we know if we sell house we should pay real estate fee
so we get need money to place is present cost - real estate fees
so cost will be
cost = house valued - real estate fees
cost = 239000 - 14000
cost = 225,000
so value we place on this house when analyzing the option of using it as a professional office is $225000
Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period.
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset.
