The cost of capital: cost of preferred stock
the cost of preferred stock, rp, used in the wei...
Business, 22.11.2019 23:31 janayshas84
The cost of capital: cost of preferred stock
the cost of preferred stock, rp, used in the weighted average cost of capital equation is calculated as the preferred dividend, dp, divided by the current price of the preferred stock, pp. -select-a or no tax adjustment is made when calculating rp because preferred dividends -select-aren't or are tax deductible; so -select-the or no tax savings are associated with preferred stock.
quantitative problem: barton industries can issue perpetual preferred stock at a price of $48 per share. the stock would pay a constant annual dividend of $3.00 per share. if the firm's marginal tax rate is 40%, what is the company's cost of preferred stock? round your answer to 2 decimal places. __%.
Answers: 3
Business, 22.06.2019 02:30
On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.
Answers: 3
Business, 22.06.2019 10:50
Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker
Answers: 1
Business, 22.06.2019 11:30
11. before adding cream to a simmering soup, you need to a. simmer the cream. b. chill the cream. c. strain the cream through cheesecloth. d. allow the cream reach room temperature. student d incorrect which answer is right?
Answers: 2
Business, 23.06.2019 00:30
Emerson has an associate degree based on the chart below how will his employment opportunities change from 2008 to 2018
Answers: 2
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