A company’s perpetual preferred stock has a par value of $15 million and pays a dividend rate of 7.5% per year. The company’s tax rate is 42%. If the preferred stock’s market value is $14.1 million, what is the company’s annual cost of preferred stock financing? Question 2 options: 1) 7.98% 2) 8.25% 3) 6.89% 4) 7.64% 5) 7.23%

Look at this section of the 1040ez form. will this individual receive a refund? yes no

Which of the following statements best reflects a price-taking firm? price-taking firms maximize profits by charging a price above marginal cost. the firm can sell only a limited amount of output at the market price before the market price will fall. if the firm were to charge more than the going price, it would sell none of its goods. the firm has an incentive to charge less than the market price to earn higher revenue.

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?