What is the appropriate amount for dazzle productions

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Question 1: XYZ issues $120 preferred stocks. Assuming annual dividend as $13, and flotation or selling cost is $5, what is the cost of preferred stock?

Option 1: 11%

Option 2: 15%

Option 3: 9%

Option 4: 13%

Question 2: Dazzle Productions held investments in trading securities with a fair value of $35,000 at December 31, 2016. These investments cost Dazzle Productions $25,000 on January 1, 2016. What is the appropriate amount for Dazzle Productions to report for these investments on the December 31, 2016, balance sheet?

Option 1: $35,000

Option 2: $25,000

Option 3: Cannot be determined from the data given

Option 4: $10,000

Reference no: EM132572547

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