What is the cost of a preferred stock with a $100 par value that pays a $9 60 dividend per year The security has a flotation cost of $3 37 and will be retired at its par value in 20 years 9 6 5 9 9 9 10 6 ...

c 99 Par value of Preferred stock 100 Floatatio ...

What is the cost of a preferred stock with a $100 par value that pays a $9.60

Question:

What is the cost of a preferred stock with a $100 that pays a $9.60 per year? The security has a flotation cost of $3.37 and will be retired at its in 20 years
9.6%
5.9%
9.9%
10.6%
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...