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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. 4.2%
B. 13%
C. 6.5%
D. 4.3%
E. 7.2%
F. 6.4%
Answer: E
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 any object type from multiple vCenter Server instances, which vRealize Operations Manager monitors
B. A custom data center is a container that can include clusters, hosts, virtual machines and datastore objects
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: A
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. Queuing theory to assess potential bottlenecks in the process.
C. Decision trees rating actual performance against requirements.
D. A program evaluation and review technique chart.
Answer: B