Question
Your employer pays a $1.00 dividend on its preferred shares. If the price of its preferred shares are $25 and floatation costs would be .50
Your employer pays a $1.00 dividend on its preferred shares. If the price of its preferred shares are $25 and floatation costs would be .50 per share, what is the required rate of return on the firm's preferred shares?
1.6.00%
2.3.00%
3.4.08%
4.5.58%
cant seem to find the required rate of rtn ..i keep getting 8%
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
