Question
(Cost of preferred stock)Your firm is planning to issue preferred stock. The stock is expected to sell for $97.38 a share and will have a
(Cost of preferred stock)Your firm is planning to issue preferred stock. The stock is expected to sell for $97.38 a share and will have a $100 par value on which the firm will pay a 13.5 percent dividend. What is the cost of capital to the firm for the preferred stock?
The firms cost of capital to the preferred stock is ____% (round to two decimal places)
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
