SW Inc.'s preferred stock, which pays a $5 dividend each year, currently sells for $62.50. The company's marginal tax rate is 40 percent. What is the cost of preferred stock, rps, that should be included in the computation of the SW Inc.'s weighted average cost of capital (WACC)??
A. ?10.00 percent
B. ?4.00 percent
C. ?5.00 percent
D. ?8.00 percent
E. ?2.00 percent
Answer: D
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Use the following information to answer the question below. The following transactions involving Lupine Corporation occurred during the year: Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company. May 3 Sold 400 of the shares purchased on April 1 for $25 per share. June 5 Retired
600 of the shares purchased on April 1 . The original issue price was $10 . The par value of the stock is $5. The entry to record the May 3 transaction would be: a. Treasury Stock, Preferred 10,000 Cash 10,000 b. Cash 10,000 Treasury Stock, Preferred 8,000 Paid-in Capital, Treasury Stock 2,000 c. Cash 4,000 Retained Earnings 6,000 Treasury Stock, Preferred 10,000 d. Treasury Stock, Preferred 8,000 Cash 8,000
____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.
A. Price skimming B. Premium pricing C. Penetration pricing D. Reference pricing E. Captive pricing
Starting conditions have no impact on the validity of a simulation model
Indicate whether this statement is true or false.
The historic federal statute UNIONS (Union Negotiated Interest Organizing National Statute) requires employers to bargain collectively with recognized unions
Indicate whether the statement is true or false