The after-tax cost of the preferred equity

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1. Please calculate the break-even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Please show work on how to calculate.

2. What is the after-tax cost of the following preferred equity? The par value of the preferred share is $100 and the annual dividend is 6%. The preferred shares have no stated maturity. The current market price of the share is $70. Assume that the corporate tax rate is 30%. The after-tax cost of the preferred equity is

Reference no: EM132019295

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