The Financing Structure of Taylor Communications Is as Follows The Weighted Cost of Preferred Stock Is
A)

question 66

Multiple Choice

The financing structure of Taylor communications is as follows: $\begin{array}{lcc}\text {Source of Capital}&\text {Proportion of capital}&\text {Cost of Capital}\\\hline \text { Debt financing, } \$ 300,000 & 30 \% & 6 \% \\\text { Preferred stock, } \$ 100,000 & 10 \% & 8 \% \\\text { Common stock, } \$ 400,000 & 40 \% & 12 \% \\\text { Retained earnings, } \$ 200,000 & 20 \% & 12 \%\end{array}$


The weighted cost of preferred stock is

• A) .8%
• B) 4.8%
• C) 2.4%
• D) 9.8%

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Definitions:

Authority

The legal right or power to make decisions, enforce rules, or command obedience.

Principal

In a legal context, a principal can also refer to the person who has authorized another (an agent) to act on their behalf.

Apparent Authority

A situation where a person appears to have the authority to act on behalf of another, even if such authority has not been explicitly given.

Agent

Someone authorized to act on behalf of another person or entity, often in business transactions or legal matters, with certain duties and powers.