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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. 6.5%
C. 6.4%
D. 7.2%
E. 13%
F. 4.3%
Answer: D
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 of the following is considered best practice for preventing e-mail spoofing?
A. Spam filtering
B. Reverse Domain Name Service (DNS) lookup
C. Uniform Resource Locator (URL) filtering
D. Cryptographic signature
Answer: D

NEW QUESTION: 3
Which of the following are best practices when developing a SAPUI5 app?
A. Describe your app using a set of metadata.
B. Minimize the code in the index.html file.
C. Use the Synchronous Model Definition (SMD) syntax.
D. Make use of patterns.
E. Use an asynchronous model definition in your JavaScript code.
Answer: A,B,D,E

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