The cost of perpetual preferred stock is found as the prefer…

The cost of perpetual preferred stock is found as the preferred’s annual dividend divided by the market price of the preferred stock. No adjustment is needed for taxes because preferred dividends, unlike interest on debt, are not deductible by the issuing firm.

Assume that the chart of accounts for Roth Co. includes the…

Assume that the chart of accounts for Roth Co. includes the following accounts:  Cash, Accounts Receivable, Equipment, Accounts Payable, Sam Roth, Capital, Sam Roth, Drawing, Fees Earned, Salary Expenses, and Utilities Expense. On July 8, the company received cash from cash customer for cash job completed $10,000.  Using the chart of accounts above, indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account for the $10,000 amount.                                                    JOURNAL                                               page 2   date description p.ref. debit CREDIT 7/08/Y6 (1)   $10,000       (2)     $10,000    

The assets and liabilities of So So Service at December 31,…

The assets and liabilities of So So Service at December 31, 20Y2, the end of the current year, and its revenue and expenses for the year are listed below.  The amount of capital of the owner, A. Southern, was $174,000 at December 31, 20Y2, the end of the current year after the statement of owner’s equity was prepared.  Using the information below, determine the amount of net income or (net loss) for the year ended December 31, 20Y2.   Accounts payable  20,000 Accounts Receivable 40,000 Cash 120,000 Fees earned 200,000 Land 30,000 Miscellaneous expense 2,000 Rent  expense 18,000 Supplies 1,000 Supplies Expense 3,000 Wages expense 100,000

Assume the owner of JoJo Company, Jo Johnson, has capital of…

Assume the owner of JoJo Company, Jo Johnson, has capital of $80,000 on January 1, 20Y9 and net income for the company as determined on the income statement for December 31, 20Y9 of $55,550.  Further assume the Mr. Johnson invested an additional $50,000 in the business and withdrew $30,000 for personal use. What would be the amount for Jo Johnson, capital on December 31, 20Y9 as determined by the statement of owner’s equity?

Mantle Corporation is considering two equally risky investme…

Mantle Corporation is considering two equally risky investments: ∙         A $5,000 investment in preferred stock that yields 6.95%.∙         A $5,000 investment in a corporate bond that yields 10.00%.What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 70.00% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)