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A company's perpetual preferred stock currently sells for $92.50
per share, and it pays an $8.00 annual dividend. If the company were to
sell a new preferred issue, it would incur a flotation cost of 5.00% of the
issue price. What is the firm's cost of preferred stock?
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Question 10
Which of the following statements is CORRECT?
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Question 11
Which of the following statements is CORRECT?
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Question 12
You have been hired as a consultant by Feludi Inc.'s CFO, who
wants you to help her estimate the cost of capital. You have been
provided with the following data: rRF = 4.10%; RPM = 5.25%; and b =
1.30. Based on the CAPM approach, what is the cost of common from
reinvested earnings?
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Question 13