Cost of preferred stock = Annual Dividend / Current Price * 100
=($100 * 4.50%) / $ 91.82 *100
= 4.90%
Hence the correct answer is 4.90%
MC algo 12-6 Cost Of Preferred Bethesda Water has an issue of preferred stock outstanding with...
Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 5 90 percent that sells for $96.30 per share. If the par value is $100, what is the cost of the company's preferred stock Multiple Choice 5.89% 587% 613% 664% 590%
Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 6.20 percent that sells for $97.26 per share. If the par value is $100, what is the cost of the company's preferred stock? A) 6.37% B) 6.15% C) 6.91% D) 6.20% E) 6.11%
MC algo 12-12 Capital Structure Weight Further From Center has 10,400 shares of common stock outstanding at a price of $38 per share. It also has 225 shares of preferred stock outstanding at a price of $89 per share. There are 540 bonds outstanding that have a coupon rate of 5.7 percent paid semiannually. The bonds mature in 19 years, have a face value of $1,000, and sell at 94 percent of par. What is the capital structure weight of...
MC algo 12-7 Pretax Cost Of Debt Too Young, Inc., has a bond outstanding with a coupon rate of 6.9 percent and semiannual payments. The bond currently sells for $1,905 and matures in 15 years. The par value is $2,000. What is the company's pretax cost of debt? Multiple Choice 7.51% 3.65% 7.98% 7.72% 7.43%
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a 9 percent coupon, and sells for 95 percent of par. The second issue has a face value of $60 million, has a 10 percent coupon, and sells for 108 percent of par. The first issue...
S08-08 Valuing Preferred Stock (LO1) Bedekar, Inc., has an issue of preferred stock outstanding that pays a $3.40 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return % S08-16 Nonconstant Dividends (LO1) Maurer, Inc., has an odd dividend policy. The company has just paid a dividend of $2.75 per...
Hankins Corporation has 79 million shares of common stock outstanding. 295,000 shares of 4.2 percent preferred stock outstanding, par value of $100; and 180.000 bonds with a semiannual coupon rate of 57 percent outstanding. par value $2.000 each. The common stock currently sells for $58 per share and has a beta of 110, the preferred stock has a par value of $100 and currently sells for $98 per share, and the bonds have 17 years to maturity and sell for...
Hankins Corporation has 8.1 million shares of common stock outstanding, 300,000 shares of 4.1 percent preferred stock outstanding, par value of $100; and 185,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $2,000 each. The common stock currently sells for $57 per share and has a beta of 1.15, the preferred stock has a par value of $100 and currently sells for $99 per share, and the bonds have 18 years to maturity and sell for...
Hankins Corporation has 6.5 million shares of common stock outstanding, 230,000 shares of 3.8 percent preferred stock outstanding, par value of $100; and 115,000 bonds with a semiannual coupon rate of 5.5 percent outstanding, par value $1,000 each. The common stock currently sells for $71 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $85 per share, and the bonds have 19 years to maturity and sell for...
Hankins Corporation has 7.9 million shares of common stock outstanding, 295,000 shares of 4.2 percent preferred stock outstanding, par value of $100; and 180,000 bonds with a semiannual coupon rate of 5.7 percent outstanding, par value $2,000 each. The common stock currently sells for $58 per share and has a beta of 1.10, the preferred stock has a par value of $100 and currently sells for $98 per share, and the bonds have 17 years to maturity and sell for...