Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $9 per share, and...
Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $9 per share, and sells for $60. The corporate tax rate is 35%. What is the percentage cost of the preferred stock? (enter as whole percentage).
Homework Answers
Cost of Preferred Stock = Annual dividend/Current Price
Cost of Preferred stock = $9/$60
Cost of preferred stock = 15%
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