In: Finance
If the dividends paid on a preferred stock issue are $3.5 per share and the price of the stock after subtracting flotation costs is $25, calculate cost of preferred stock.
16.77%
14.00%
15.56%
7.78%
none of the answers is correct
Praxair Inc has a project with initial investment requiring $-120,000 and the following cash flows will be generated for the following 5 years at the end of each year because of the project: $30,000; $140,000; $176,000; $50,000; and $80,000 respectively. If the required rate of return is 0.19, find the payback period (PB) of the project.
none of the answers is correct
1.64 years
2.35 years
2.03 years
1.20 years
Assume the foreign exchange rate quotes are such that $1 is equal to 0.731 units of Euros and 8.19 units of HK dollars. Also, those quotes can be expressed as Euros 0.731/$ and HK dollars 8.19/$. How many Euros is needed to buy 1 unit of HK dollar?
none of the answers is correct
HK dollars 11.2031/Euro
HK dollars 17.1031/Euro
Euros 0.0893/HK dollar
Euros 5.9031/HK dollar