Tempo corp. will issue preferred stock to finance a new artillery line. the firm's existing preferred stock pays a dividend of $4.00 per share and is selling for $40 per share. investment bankers have advised tempo that flotation costs on the new preferred issue would be 5% of the selling price. tempo's marginal tax rate is 30%. what is the relevant cost of new preferred stock? a) 7.00%b) 7.37%c) 10.00%d) 10.53%e) 15.00%

Acompany manufactures x units of product a and y units of product b, on two machines, i and ii. it has been determined that the company will realize a profit of $3 on each unit of product a and $4 on each unit of product b. to manufacture a unit of product a requires 7 min on machine i and 5 min on machine ii. to manufacture a unit of product b requires 8 min on mchine i and 5 min on machine ii. there are 175 min available on machine i and 125 min available on machine ii in each work shift. how many units of a product should be produced in each shift to maximize the company's profit p?