The required return of a preferred stockholder, rps, is higher than the cost of preferred stock for the
corporation because stockholders must pay federal taxes on their dividend income.
Indicate whether the statement is true or false
FALSE
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On January 1, Cleopatra Corporation issued $2,000,000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $2,144,192. The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for
a. $240,000. b. $251,162. c. $257,304. d. $280,000.
According to Larry Wilson, there are three keys to a partnering relationship. To establish a partnership with a customer, he suggests:
A) making sure everybody understands the purpose of the partnership B) being sure the relationship is primarily social rather than professional C) shifting the relationship from consulting to selling as quickly as possible D) convincing clients of the need for the product by using many nonverbal cues E) using closing methods that emphasize a rapid sale and future client referrals