Question
(3) Company BW has 600,000 shares of preferred stock outstanding. The par value is $10 and dividend rate is 12% per year. Dividends are paid
(3) Company BW has 600,000 shares of preferred stock outstanding. The par value is $10 and dividend rate is 12% per year. Dividends are paid every quarter and the current market price of the preferred is $8.76 per share.
Find the annual effective cost of preferred stocks. [4 points]
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
