(Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $44 and...
(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 ??
Homework Answers
Cost of Preferred Stock =Dividend/ Net Price of security after
issuance costs =4/39.16 = 10.21%
Cost of Preferred Stock =10.21%
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(Cost of preferred stock) The preferred stock of Texas
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Should not/ should
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