Calculate the after-tax cost of preferred stock for ohio valley power company, which is planning to sell $100 million of $3.25 cumulative preferred stock to the public at a price of $25 per share. flotation costs are $1.00 per share. ohio valley has a marginal income tax rate of 40%.

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.