The cfo of peaceful book binding company has decided that the company needs to raise additional capital. it can sell preferred stock paying an annual $6 dividend per share for $100 per share; however, it will incur a flotation cost of 2.7% per shareafter it pays the underwriter, red oyster seafood company will receive from each share of preferred stock that it issues. based on this information, red oyster seafood company's cost of preferred stock is when raising funds by issuing new preferred stock, the company will incur an underwriting, or flotation, cost that the cost of preferred stock.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer