The cost of preferred stock is equal to
A) the preferred stock dividend divided by market price.
B) the preferred stock dividend divided by its par value.
C) (1 - tax rate) times the preferred stock dividend divided by net price.
D) the preferred stock dividend divided by the net market price.
Answer: D
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Joe Perone was a member of Caddy, Shack, & Perone, a general trading partnership. He died and the partnership is being liquidated in a bankruptcy proceeding, but Perone's estate is substantial. The creditors of the partnership are seeking to collect on their claims from Perone's estate. Which of the following statements is true insofar as their claims are concerned?
A. The death of Perone caused a dissolution of the firm, thereby freeing his estate from personal liability. B. Partnership creditors and Perone's personal creditors are on an equal footing regarding the assets of Perone's estate. C. The creditors must first proceed against the remaining partners before Perone's estate can be held liable for the partnership's debts. D. The liability of Perone's estate cannot exceed his capital contribution plus that percentage of the deficit attributable to his capital contribution.
How would you relate skill variety, job rotation, and skill-based pay?
What will be an ideal response?