Afirm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. a new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. flotation costs are expected to total $1 per share. the dividends paid on the outstanding stock over the past five years are as follows:
year div
1 $4
2 4.28
3 4.58
4 4.90
5 5.24

the cost of this new issue of common stock is
a. 5.8%
b. 7.7%
c. 10.8%
d. 12.8%

Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.a) find the economic order quantity.b) find the annual holding costs.c) find the annual ordering costs.d) what is the reorder point?

There are three factors that can affect the shape of the treasury yield curve (r* t , ip t , and mrp t ) and five factors that can affect the shape of the corporate yield curve (r* t , ip t , mrp t , drp t , and lp t ). the yield curve reflects the aggregation of the impacts from these factors. suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the us treasury yield curve can take. check all that apply.a. downward-sloping yield curveb. upward-sloping yield curvec. inverted yield curve

Sally has a high-paying management position with a fortune 500 company, but she is tired of working for corporate america. so sally has decided to start a business, and she knows she will be successful as an entrepreneur because entrepreneurs typically