Tangshan Mining is considering issuing preferred stock. The preferred stock would have a par value of $75 and a 5.50 percent dividend. What is the cost of preferred stock for Tangshan if flotation costs would amount to 5.5 percent of par value?
A) 5.50%
B) 5.27%
C) 7.73%
D) 5.82%
D
You might also like to view...
Which of the following statements is incorrect concerning liquidated damages?
a. A liquidated damages clause will be enforced if, when the contract was made, it was difficult to estimate actual damages. b. The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. c. Nominal damages are not the same thing as liquidated damages. d. Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.
All of the following are components of express contracts except:
a. the terms are stated in writing and often in great detail. b. the terms and conditions of the contract must be inferred from the contracting parties' behavior toward one another. c. the terms of the contract are explicitly stated. d. the judge and/ or the jury is asked only to interpret the terms according to their plain meaning.
In order to be treated as alimony for tax purposes, payments must be made in cash.
Answer the following statement true (T) or false (F)
Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: Total CompanyRetail Division Wholesale DivisionSales$680,000$375,000 $233,000 Variable expenses$185,530$90,000 $95,530 Traceable fixed expenses$303,000$217,000 $86,000 The common fixed expenses of the company are $103,360. The company's overall break-even sales is closest to:
A. $153,526 B. $584,815 C. $526,014 D. $431,289