The Auto Group has 1,200 bonds outstanding that are selling for $980 each. The company also has 7,500 shares of preferred stock at a market price of $40 each. The common stock is priced at $32 a share and there are 32,000 shares outstanding
What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?
A) 10 percent
B) 12 percent
C) 14 percent
D) 16 percent
E) 18 percent
B
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According to the product life cycle theory, trade between countries is caused by
a. diseconomies of large scale production. b. differences in per-capita income levels. c. the occurrence of monopolies and oligopolies. d. changing patterns of comparative advantage.
Process costing information can inform managers about the amounts and types of products ordered by specific customers
Indicate whether the statement is true or false
Samba Company acquired 10,000 shares of the common stock of Pati Corp in July 2014 . The following January, Pati announced a $100,000 net income for 2014 and declared a cash dividend of $.50 per share on its 100,000 shares of outstanding common stock. The Samba Company dividend revenue from Pati Corp in January 2014 would be
a. $0. b. $2,500. c. $5,000. d. $10,000.
In the ________ stage of the retail life cycle, retail businesses become obsolete as newer ways of doing business emerge
A) decline B) overexpansion C) competition D) maturity E) growth