Moore Financing Corporation has preferred stock in its capital structure paying a dividend of $3.75 and selling for $25.00. If the marginal tax rate for Moore is 34%, what is the after-tax cost of preferred financing?
What will be an ideal response?
Answer: After-tax cost of preferred = $3.75/$25.00 = .15
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The decision criteria used in selecting advertising agencies can be applied to selecting a public relations firm
Indicate whether the statement is true or false
If public relations professionals expect audiences to benefit from their website, they should ________
A) strive to make it as easily navigable as possible B) strive to make it "static" C) strive to make it media-friendly, above all D) strive to catalog news clips and publications
Answer the following statement(s) true (T) or false (F)
11. Among the most common mistakes entrepreneurs make is getting blindsided by passion in terms of being overly optimistic and confident in their skills and abilities. 12. Prediction works best in an unstable environment 13. According to the authors, everyone is an expert creator from birth because the only way we learned as a baby was by trial and error. 14. Empathy allows you to connect with potential stakeholders in a more meaningful way, which could help to identify unmet needs, leading to the creation of new products and services 15. The creation approach allows entrepreneurs to determine their goals according to whatever resources they have at hand.
Which of the following statements is CORRECT, other things held constant?
A. If companies have fewer good investment opportunities, interest rates are likely to increase. B. If individuals increase their savings rate, interest rates are likely to increase. C. If expected inflation increases, interest rates are likely to increase. D. Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities. E. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.