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. __%.

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.