ILK has preferred stock selling for 95 percent of par that pays a 9 percent annual coupon. What would be ILK’s component cost of preferred stock? (Round your answer to 2 decimal places.)

9.47%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of preferred stock = Annual coupon ÷ Price of preferred stock per share

where,

Preferred stock sale price = 100 ×  95% = $95

And, the annual coupon = 9% × 100 = $9

= $9 ÷ $95

= 9.47%

We assume the par value be 100

Simply we divide the annual coupon by the price of preferred stock per share so that the correct cost of preferred stock can be computed

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'