Kyle is raising funds for his company by selling preferred stock The preferred stock has a par value of $100 and a dividend rate of 6 The stock is selling for $80 in the market What is the cost of preferred stock for Kyle ...

Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par

Question:

Kyle is raising funds for his company by selling preferred stock. The preferred stock has a of $100 and a rate of 6%. The stock is selling for $80 in the market. What is the cost of preferred stock for Kyle?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...