If a Firm Has Total Long-Term Capital of $1,000,000, Preferred

question 1

Multiple Choice

If a firm has total long-term capital of $1,000,000, preferred stock of $500,000, preferred dividends of $10 and preferred stock price of $100, the weighted cost of capital is: Bad item-can't tell as no cost of debt given.Strange, too, there is no common stock.

• A)50%
• B)10%
• C)5%
• D)cannot tell from this information

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Definitions:

Foreign Visitors

Individuals from other countries who travel to a country for various purposes such as tourism, business, or education.

Ticket Prices

The cost charged for admission to an event or a journey.

Perfectly Price Discriminate

The practice of a seller charging the maximum possible price that each consumer is willing to pay for a product, rather than charging everyone the same price.

Societal Loss

The total loss in welfare or efficiency that occurs when market equilibrium is not achieved, often due to externalities, monopolies, or other market failures.