Do Homework - Cristian Clementi - Google Chrome Secure | https://www.mathxl.com

Question

Do Homework - Cristian Clementi - Google Chrome Secure | https://www.mathxl.com yerHomework.aspx?homeworkId=448577574&questionld; = 1 &flushed; = false&cld;=4704237&centerwin; =yes FIN-350-MWF1230A-Fundamentals of Business Financs Cristian Clementi 12/4/17 1:31 PM Homework: Module 7: Chapter 9 Save Score: 0 of 5 pts 2018 (0 complete ) | HW Score: 0%, 0 of 40 pts P9-7 (similar to) Question Help Taylor Systems has ust issued preferred stock The stock has a 11% annual dividend and a $75 par value and was sold at $74 25 per share. In addition, notation costs of S5 25 per share were paid Calculate the cost or the cost ot preferred stock preferred stock. The cost of the preferred stock is 16. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer All parts showing Clear All Check Answer 1:31 PM O Type here to search ^ · 4x 12/4/2017 EB) |

Explanation / Answer

Annual dividend=(75*11%)=$8.25

Hence cost of preferred stock=Annual dividend/(Price-Floatation costs)

=8.25/(74.25-5.25)

=8.25/69

=11.96%(Approx)

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.