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NEW QUESTION: 1
The following information applies to a company's preferred stock:
Current price $101.00 per share
Par value $100.00 per share
Annual dividend $6.50 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?
A. 6.5%
B. 4.3%
C. 7.2%
D. 6.4%
E. 13%
F. 4.2%
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 $6.50, and the net issuing price was $90.00. Thus the cost of preferred stock is 6.5 divided by 90 or 7.2%. 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
Which statement is true about custom data centers? (Choose the best answer.)
A. A custom data center is a container that can include clusters, hosts, virtual machines and datastore objects
B. A custom data center is a container that can include any object type from multiple vCenter Server instances, which vRealize Operations Manager monitors
C. A custom data center is a container that can include only virtual machine and datastores objects
D. A custom data center is a container that can include clusters and hosts
Answer: B
Explanation:
Explanation/Reference:
Reference https://docs.vmware.com/en/vRealize-Operations-Manager/6.4/com.vmware.vcom.core.doc/ GUID-B0B1F0E5-F150-4BBE-A41F-D3AD15575EB4.html

NEW QUESTION: 3
Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?
A. ABedfordanalysis of orders filled to average delivery times.
B. Decision trees rating actual performance against requirements.
C. A program evaluation and review technique chart.
D. Queuing theory to assess potential bottlenecks in the process.
Answer: D