At the beginning of 20x1, a company issues 100,000 shares of 4%, $10 par value, cumulative preferred stock. all remaining shares outstanding are common stock. the company does not pay any dividends in 20x1, but pays dividends of $100,000 at the end of 20x2. how much of the dividend will be paid to common stockholders in 20x2?

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan