Question
Eskridge Industries can issue perpetual preferred stock at a price of $45.20 a share. The stock would pay a constant annual dividend of $3.55 a
Eskridge Industries can issue perpetual preferred stock at a price of $45.20 a share. The stock would pay a constant annual dividend of $3.55 a share. What is the companys cost of preferred stock, r p?
| a. | 8.52% | |
| b. | 5.50% | |
| c. | 7.28% | |
| d. | 7.85% | |
| e. | 12.73% |
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
