# principles of finance

You are considering the of xyz company's perpetual preferred stock, which pays a perpetual divend of \$8 per. If the appropriate discount rate for this investment is 14%, what is the price of one share of this stock? Thank you.

Preferred stock differs from common stock in that preferred stock: Thank You?

Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough fixed costs were \$100,000 and unit contribution margin was remains at \$5.00. The new amount of break-even units will be:

75,000/5.00 = 15,000 unit sales will result in breakeven

1. 👍 0
2. 👎 0
3. 👁 65

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