VSK enterprises can issue a 30-year, bonds with an annual rate of 10%. Its investment bankers also also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 21% tax bracket. The after tax premium on preferred stock will exceed the after tax cost on bonds by 2%, which would represent the higher risk on preferred stock. What coupon rate must be set on the preferred in order to issue it at par

Which of the following statements is true? a job costing system will have a separate work in process account for each of the major processes. a process costing system will have a single work in process account. a process costing system will have a separate raw materials account for each of the major processes. a process costing system will have a separate work in process account for each of the major processes.

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

In microeconomics, the point at which supply and demand meet is called the blank price