Price after flotation cost = 111.6 - 8.4 = 103.2
Annual dividend = 0.09* 120= 10.8
Cost of preferred stock = (Annual dividend / price) * 100
Cost of preferred stock = (10.8 / 103.2) * 100
Cost of preferred stock = 10.47%
Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 9%...
Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 10% annual dividend and a $75 par value and was sold at $78.00 per share. In addition, flotation costs of $6.00 per share were paid. Calculate the cost of the preferred stock. The cost of the preferred stock is %. (Round to two decimal places.)
Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 8% annual dividend and a $100 par value and was sold at $99.50 per share. In addition, flotation costs of $1.50 per share were paid. Calculate the cost of the preferred stock The cost of the preferred stock is %. (Round to two decimal places.)
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Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has an 8% annual dividend and a $100 par value and was sold at $99.50 per share. In addition, flotation costs of $1.50 per share must be paid. a. Calculate the cost of the preferred stock. b. If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after flotation costs, what is its cost? c. Using the constant-growth valuation model, determine the...
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