Tangshan Mining is considering issuing preferred stock. The ...

[bucstennis@aim.com]

Tangshan Mining is considering issuing preferred stock. The preferred stock would have a par value of 75 and a 5.50 percent dividend. What is the cost of preferred stock for Tangshan if flotation costs would amount to 5.5 percent of par value?
 
  A) 5.50
  B) 5.27
  C) 7.73
  D) 5.82

Question 2

________ ratio measures the proportion of total assets financed by the firm's creditors.
 
  A) Total asset turnover
  B) Inventory turnover
  C) Current
  D) Debt

[nmyers]

Answer to Question 1

D

Answer to Question 2

D

[bucstennis@aim.com]

TY

[nmyers]

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