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:

Self-starters

Individuals who are motivated and able to begin or continue tasks without external prodding or supervision, often highly valued in entrepreneurial and professional settings.

Psychological Motivation

Psychological Motivation refers to the internal processes and desires, such as needs, wants, and goals, that drive individuals to pursue and achieve certain actions or outcomes.

Achievement

A significant accomplishment or attainment, often marked by effort or skill.

Role Models

Individuals admired for their characteristics or accomplishments, who serve as examples for others to emulate.