Finance Assignment Paper Cost Of Preference Stock - 275 Words

Finance Assignment Paper: Cost Of Preference Stock (Essay Sample) Content: FinanceNameInstitutionIntroductionThe cost of the preferred stock is described as the acceptable rate of return which the preference shareholders are entitled to receive as an appreciation for the investing in the organization. Companies pay the preference shares before the ordinary shares. The preference shares are paid to the shareholders at the end of every financial year (Petty et al, 2015). In most instances, these dividends are fixed and hence are paid in perpetuity.Cost of preference stockSelling price= $ 27.5Net issuance cost = $ 25.6Floatation cost = $ 27.5- 25.6= $ 1.90Dividends= $ 3.00Cost of existing stock:KP= DpP0-f= 327.5= 10.909%The new stock will be:KP= DpP0-f= 327.5-1.9= 11.719%The cost of the preference shares will increase by= 11.719%-10.909= 0.81%The cost of the preferred cost is obtained by dividing the preference dividends by the price of the share, which is subtracted from the floatation cost. Toto and Associates issued the preference shares at a floatation cost of $ 1.90, hence the increased cost of the preference shares. The preference shares increased by 0.81%, which can be interpreted that the company will be required to pay more to the preferred shareholders when compared to the investment at the beginning of the year (Petty et al, 2015). The increase in cost is a liability to the company since it will be required to pay more to its shareholders. The floatation cost is c...

How to Write a Good Marketing Essay

How to Write a Good Marketing Essay The Purpose of Marketing Essays Marketing essays can help put a good marketing strategy in place by conveying information about competitive market advantages and financial profits. Marketing essays express thoughts and ideas and persuade people in understanding opinions and viewpoints relating to marketing strategy initiatives. Tips for Writing a Good Marketing Essay Begin with deciding on a relevant topic and thesis. This includes conducting relevant research about the marketing aspects that pertain to your chosen subject. Three important aspects of marketing are: image, the competition, and customer service. It is important to focus on these three marketing aspects when writing a marketing essay. In addition, the following tips will help you with your essay: The Topic – Choose a topic based on a logical framework within your field, such as those researched by past marketing experts like Philip Kotler and Michael Porter. The Framework – The framework of your marketing essay should have a theoretical approach such as with those by marketing experts. It is important to study other companies and products to understand market positioning, using reliable research sources, for a relevant essay. Reliable research sources include those from publications and universities such as JSTOR, EBSCOhost, Harvard, or Cambridge. Next, construct an outline of your essay to use as a blueprint for writing the essay. The Introduction and Thesis Your introduction should outline your main idea and should contain your thesis statement. Here is where you build your argument and a case for your thesis. The Body – This is where your argument is outlined and reasoned. It is a good idea to use previous case study information to help the reader understand your topic, as it pertains to marketing. Approach your argument logically, step-by-step so that the paper flows. Expand on details and use examples. Be sure to use your researched information to set up a good case for your thesis, so that the reader can easily understand your purpose. The body of the essay will also contain your research findings, conclusion, recommendations, and author opinions. These aspects of the essay should wrap up and tie in all of the research, information and viewpoints to answer marketing research questions and expand on whether further research is needed. Editing and Revision – This step is essential to the flow and cohesiveness of your marketing essay, and includes revision. Revision includes ensuring that all relevant information is included in the essay, such as a marketing issue or ideas. Editing entails ensuring the document is free from grammatical, spelling, and language use errors. Writing a marketing essay is not an easy task, but following these tips can certainly help you complete the task and deliver a well-researched, well-written, and informative essay. At AdvancedWriters.com you will get professional Marketing essay help from academic experts.