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Oksana_A [137]
2 years ago
8

The 7.5 percent preferred stock of Home Town Brews is selling for $43 a share. What is the firm's cost of preferred stock if the

tax rate is 34 percent and the par value per share is $100?
Business
1 answer:
Damm [24]2 years ago
8 0

Answer:

The firm's cost of preferred stock is 17.44%

Explanation:

For computing the cost of preferred stock, first, we have to calculate the dividend per share. The formula of dividend per share is shown below:

Dividend per share = Preferred stock percentage × par value per share

                                = 7.5 % × $100

                                =$7.5 per share

Now we can easily compute the cost of preferred stock. The formula is shown below:

= Dividend per share ÷ Price of preferred stock

= $7.5 ÷ $43

= 17.44%

The tax rate should be ignored because the tax rate is used for debt calculation , not for preferred stock.

Hence, the firm's cost of preferred stock is 17.44%

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The balance sheet of Purdy's BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectivel
Amiraneli [1.4K]

Answer:

Option (B) is correct.

Explanation:

Given that,

Total assets (Beginning) = $800,000

Total assets (Ending) = $900,000

Net income = $85,000

Sales = $1,700,000

Average assets = [Total assets (Beginning) + Total assets (Ending)] ÷ 2

                          = [$800,000 + $900,000] ÷ 2

                          = 850,000

Purdy's asset turnover:

= Sales ÷ Average assets

= $1,700,000 ÷ 850,000

= 2

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2 years ago
Joe and Debra are deeply interested in the well-being of the cocoa farmers they buy from. Imagine that they were thinking about
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Answer:

The correct answers are letters "B" and "D".

Explanation:

The global service system of Theo Chocolate provides a great opportunity for some of its staff to get a <em>deeper insight into how the company's different markets work</em>. Operations in different regions include coping with different cultures which also include talking about different people and consumer patterns. Thus, all this information can be collected by the employees who are sent for one year to work in those regions.

Furthermore, chances of <em>diversification chances may appear in spotting the opportunities</em> of Theo Chocolate in foreign markets. The organization must ensure that the members sent for the exchange experience are well trained to get the most out of the global service program.

7 0
2 years ago
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Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
zimovet [89]

Answer:

Explanation:

There are total 5 batches and two boards are selected from each batch for inspection.

Let the boards are numbered from 1 to 5.

If the selected boards are 1 and 2, then it is represented in pair as (1, 2).

If the selected boards are 1 and 3, then it is represented in pair as (1, 3).

Similarly, other pairs can be obtained.

a) Let X be the number of defective boards observed among the two inspected.

If the boards 1 and 2 are the only defective boards in a lot of five, then

(1,2),x=2; (1,3),x=1; (1,4),x=1; (1,5),x=1;

(2,3),x=1; (2,4),x=1; (2,5),x=1;

(3,4),x=0;\ (3,5),x=0;\ (4,5),x=0.(3,4),x=0; (3,5),x=0; (4,5),x=0.

P(X=0)=  3/10 =0.3

P(X=1)={6 \over 10}=0.6P(X=1)=  6/10 =0.6

P(X=2)={1 \over 10}=0.1P(X=2)=  1/10 =0.1

b)

x                  0               1                    2

p(x)            0.3           0.6                0.1

​

​μ  X  =0⋅0.3+1⋅0.6+2⋅0.1=0.8

σ  X ² =(0−0.8)²  ⋅0.3+(1−0.8)²  ⋅0.6+(2−0.8)² ⋅0.1=0.36

μₓ=0.8, σX  =0.6

 

​

5 0
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Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive dur
lora16 [44]

Answer:

The correct answer is a w-4 form

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Most people receive W-4 forms from their employers when they start working. Payroll departments use the information that employees provide on their W-4 forms to determine how much money should be withheld from their federal tax salaries. If you have just entered the workforce, filling out a W-4 form for the first time can be confusing.

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A broker followed the instructions in an escrow disbursement order. However, one of the parties to the contract sued the broker
densk [106]

The amount that should be associated with the given case is $16,000.

The computation is as follows:

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In order to determine the value i.e. associated we add the above 3 items.

Therefore we can conclude that The amount that should be associated with the given case is $16,000.

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