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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. 4.6%
C. 7.8%
D. 7%
E. 5.1%
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
A customer reports their mail can send emails but not receive them. A technician arrives on-site to troubleshoot the issue. Which of the following troubleshooting steps should the technician do FIRST?
A. Escalate the problem to a manager
B. Establish a theory of probable cause
C. Perform a root cause analysis
D. Identify changes to the server
Answer: B

NEW QUESTION: 3
Hotspot Question


OSPF is configured using default classful addressing. With all routers and interfaces operational, how many networks will be in the routing table of R1 that are indicated to be learned by OSPF?
A. 0
B. 1
C. 2
D. 3
E. 4
F. 5
Answer: D
Explanation:
Explanation/Reference:
Explanation:
It already knows about its directly connected ones, only those not directly connected are "Learned by OSPF".
OSPF as a link state routing protocol (deals with LSAs rather than routes) does not auto summarize (doesn't support "auto-summary"). So routes learned by OSPF are:
172.16.2.64/26
172.16.2.228/30
172.16.2.232/30
172.16.3.0/24