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NEW QUESTION: 1
The following information applies to a company's preferred stock:
Current price $48.00 per share
Par value $50.00 per share
Annual dividend $3.50 per share
The company issued the preferred stock at par and incurred a 10% floatation cost. If the company's marginal corporate tax rate is 34%, what is the after-tax cost of preferred stock at the time of issue?
A. 7.3%
B. 7%
C. 7.8%
D. 5.1%
E. 4.6%
F. 3.5%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The cost of preferred stock is calculated as the preferred stock dividend divided by the net issuing price.
The dividend for this preferred stock is $3.50, and the net issuing price was $45.00. Thus the cost of preferred stock is 3.5 divided by 45 or 7.8%. There are no tax savings associated with the use of preferred stock, therefore no tax adjustments are made when calculating the cost.
NEW QUESTION: 2
DRAG DROP
You use SQL Server Integration Services (SSIS) for extract, transformation, load (ETL) processing.
Issues concerning addresses are discovered in the data warehouse that you manage. Validation must separate the addresses into three categories:
Valid addresses
Autocorrected addresses
Invalid addresses
You need to enhance the SSIS packages to perform address validation by using an external service.
Which transformation should you use? (To answer, drag the appropriate transformation from the list of options to the correct location or locations in the answer area.)
---
Answer:
Explanation:
NEW QUESTION: 3
On the EVA4000, what is the maximum number of disk drives per FC-AL loop?
A. 0
B. 1
C. 2
D. 3
Answer: C