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The table below shows some information for three different issues of preferred stock: Stock Par value Annual dividend rate Issue price Issue costs per share
The table below shows some information for three different issues of preferred stock:
| Stock | Par value | Annual dividend rate | Issue price | Issue costs per share |
|---|---|---|---|---|
| 1 | 100 | 0.08 | 92 | 7 |
| 2 | 50 | 0.06 | 50 | 3 |
| 3 | 20 | 0.08 | 16 | 2 |
1. What is the cost of preferred stock 1?
2. What is the cost of preferred stock 2?
3. What is the cost of preferred stock 3?
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
