Multiple Choice
Preferred stock is paying an annual dividend of $9.50 and is currently trading at $79.16. Assume floatation costs of 12%. What is the cost of preferred stock?
A) 8.33%
B) 9.47%
C) 10.56%
D) 12.00%
E) 13.64%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q136: Match the following:
Q137: The Weighted Average Cost of Capital (WACC)is
Q138: Use the dividend growth or Gordon model
Q139: Master Company has 3 million shares of
Q140: Groves, Inc. pays an annual dividend of
Q142: A firm's correctly computed capital structure consists
Q143: Book values reflect the cost of capital
Q144: According to finance theory, which of the
Q145: A firm's target capital structure is a
Q146: The blend or mix of capital components