In April, a firm had an ending cash balance of 35,000. In May, ...

[mikaylakyoung]

In April, a firm had an ending cash balance of 35,000. In May, the firm had total cash receipts of 40,000 and total cash disbursements of 50,000. The minimum cash balance required by the firm is 25,000. At the end of May, the firm had ________.
 
  A) an excess cash balance of 25,000
  B) an excess cash balance of 0
  C) required financing of 10,000
  D) required financing of 25,000

Question 2

Jia's Kitchen Stuff has recently sold 1,000 shares of preferred stock. What is the value of the stock assuming 10 percent required rate of return and a preferred dividend of 6.75?
 
  What will be an ideal response?

[canderson530]

Answer to Question 1

B

Answer to Question 2

P = D / r = 6.75 / 0.10 = 67.50

[mikaylakyoung]

Excellent

[kthug]

Great answer, keep it coming