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10-4: Cost of Preferred Stock, tp Cost of Preferred Stock Tunney Industries can issue perpetual preferred stock at a price of what is the correct answer?


10-2: Basic Definitions WACC Klose Outfitters Inc, believes that its optimal capital structure consists of 55% common equity
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Answer #1

Calculate the preferred stock dividend as follows:

Cost of preferred stock = Dividend / Price

Cost of preferred stock = 4.50/57.50

Cost of preferred stock = 7.83%

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