Homework Answers
dividend yield= preference dividend/market price (12 years ago)
9%= preference dividend/100
Preference dividend=$9
Current market price =$72
Cost of irredeemable preference shares= (preference
dividend/current market price)×100%
=(9/72)×100%
=12.5%
Cost of preference stock= 12.5%
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(e) Wallace Container Company issued $100 par value preferred stock 12 years ago. The stock provided...
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