The current price of the firms 10 percent, $100 par value, quarterly dividend, perpetual preferred stock...

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The current price of the firms 10 percent, $100 par value, quarterly dividend, perpetual preferred stock...

The current price of the firms 10 percent, $100 par value, quarterly dividend, perpetual preferred stock is $115.00. What is the firm’s cost of preferred stock?

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Answer 1

Answer #1

What is the firm’s cost of preferred stock

=(100*10%)/115

=8.70%

the above is answer

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Answer 2

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