Cost of capital for preferred stock = Dividend / Stock price
Cost of capital for preferred stock = $3 / $49
Cost of capital for preferred stock = 0.061 or 6.1%
6. Dewyco has preferred stock trading at $49 per share. The next preferred dividend of $3...
Dewyco has preferred stock trading at $48 per share. The next preferred dividend of $3 is due in one year. What is Dewyco's cost of capital for preferred stock? The cost of capital for preferred stock is %. (Round to one decimal place .)
Dewyco has preference stock trading at $50 per share. The next preference dividend of $4 is due in one year. What is Dewyco's cost of capital for preference share? O a. The cost for Dewyco's preference share is 9% per annum. O b. The cost for Dewco's preference share is 20% per annum O c. The cost for Dewyco's preference share is 12.5% per annum. d. The cost for Dewyco's preference share is 8% per annum
Barton Industries can issue perpetual preferred stock at a price of $49 per share. The stock would pay a constant annual dividend of $3.50 per share. If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock? Round your answer to 2 decimal places. 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). The bonds currently sell for...
1. What is the price of a share of preferred stock that has a dividend of $3 if the cost of preferred (rp) is 15% 2. What would you pay for a share of common stock if you expect the next dividend to be $3 and you expect to sell it in one year for $25, assuming the cost of equity (re) is 15%.
A stock is trading at $55 per share. The stock is expected to have a year-end dividend of $3 per share (D1 = $3), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 16% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? Round the answer to three decimal places. %
Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $6 per share, and sells for $40. The corporate tax rate is 35%. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.)
Ovit, Inc. has preferred stock with a price of $21.76 and a dividend of $1.41 per year. What is its dividend yield? The dividend yield is %. (Round to one decimal place.)
Purple Lemon Fruit Company has preferred stock that pays a dividend of $5 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.7%. How much will Purple Lemon Fruit Company pay per share to the underwriter? O $2.70 per share O $2.97 per share $97.30 per share $87.57 per share Based on this information, what is Purple Lemon Fruit Company's cost of...
what is the dividend yield on a stock that is currently trading at$70 per share and is expected to pay a dividend of $2.21 per share over the next twelve months?
HighGrowth Company has a stock price of $17. The firm will pay a dividend next year of $0.98, and its dividend is expected to grow at a rate of 3.7% per year thereafter. What is your estimate of HighGrowth's cost of equity capital? The required return (cost of capital) of levered equity is _____%. (Round to one decimal place.)