Jensen's Travel Agency has a 7 percent preferred stock outstanding that is currently selling for $48 a share. The preferred stock has a $100 par value. The market rate of return is 10 percent and the firm's tax rate is 34 percent
What is the Jensen's cost of preferred stock?
A) 8.75 percent
B) 9.62 percent
C) 11.98 percent
D) 13.25 percent
E) 14.58 percent
E
You might also like to view...
Copyright laws cover a symbol or slogan, used alone or in combination, that identifies a product or its sponsor
Indicate whether the statement is true or false
A petty cash fund was established with a $600 balance
It currently has cash of $130 and petty cash tickets as shown below: Travel expense $115 Office supplies expense 310 Equipment rental expense 45 Which of the following would be the journal entry to replenish the Petty Cash account? A) debit various expenses $470; credit Cash $470 B) debit various expenses $470; credit Petty Cash $470 C) debit Cash $130; credit various expenses $130 D) credit Petty Cash $470; debit Cash $470
Baker put his house on the market for $90,000 . Dalton offered $80,000, which Baker refused. Baker then offered to sell Dalton the house for $85,000 . Baker's $85,000 offer is a(n)
a. counteroffer. b. acceptance. c. bid. d. contingency.
Oil Reserves, Inc, and Petro Refining Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to? A) sole proprietorships
B) limited liability companies. C) corporations. D) partnerships.