Annual Dividend = $3.00
Current Price = $35.00
Flotation Cost = 5%
Net Issue Price = Current Price * (1 - Flotation Cost)
Net Issue Price = $35.00 * (1 - 0.05)
Net Issue Price = $33.25
Cost of Preferred Stock = Annual Dividend / Net Issue
Price
Cost of Preferred Stock = $3.00 / $33.25
Cost of Preferred Stock = 0.0902 or 9.02%
The preferred stock of the company sells for $35 and pays $3 in dividends. Flotation costs...
Afirm's preferred stock pays an annual dividend of $6, and the stock sells for $85. Flotation costs for new issuances of preferred stock are 7% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 33%? (Round your answer to 2 decimal places.) Multiple Choice Ο Ο Ο Ο ο ο ο ο
Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $60 par preferred stock with a 5% dividend. A similar stock is selling on the market for $69. Burnwood must pay flotation costs of 6% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.?
Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $61. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.
(Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $44 and pays $4 in dividends. The net price of the security after issuance costs is $39.16. What is the cost of capital for the preferred stock? The cost of capital for the preferred stock is ??
3. If the dividends paid on a preferred stock issue are $3 per share and the cost of preferred stock is 12%, calculate the price of the stock. Assume there are no flotation costs. A) $12 B) $20 $36 D) $25
12. ( Cost of Preferred Stock) the preferred stock of Walter Industries sells for Rs52 and pays Rs5.80 in dividends. The net price of the security after issuance costs is Rs40.00. What is the cost of capital for the preferred stock?
Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital markets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stockholders. Consider the case of Red Oyster Seafood Company: Ten years ago, Red Oyster Seafood Company issued a perpetual preferred stock issue-called PS Alpha-that pays a fixed dividend of $8.50 per share and currently sells for $100...
Bostwick Company's perpetual preferred stock sells for $85 per share, and it pays an $8.10 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the weighted average cost of capital (WACC)? Your answer should be between 7.20 and 11.52, rounded to 2 decimal places, with no special characters.
1. California Motors can sell preferred stock for $60 with an estimated flotation cost of $6. It is anticipated that the preferred stock will pay $5 per share in dividends. Compute the cost of preferred stock for the company. 2. Use the followings data for both Problem 2 and Problem 3. Power Cable Company wants you to calculate its cost of common stock. During the next 12 months, the company will pay dividends (D1) of $3.50 per share, and the current price of its common...
Problem 9-4 Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $60 par preferred stock with a 8% dividend. A similar stock is selling on the market for $65. Burnwood must pay flotation costs of 6% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places. % Please, show step by step. Thank you.