Micahs Time Portals has a preferred stock issue outstanding that pays an annual dividend of $2 50 per year and is currently selling for $27 78 a share What is the cost of preferred stock for this firm ...

Micahs Time Portals has a preferred stock issue outstanding that pays an annual dividend of $2.50 per

Question:

Micah’s Time Portals has a preferred stock issue outstanding that pays an annual of $2.50 per year and is currently selling for $27.78 a share. What is the cost of preferred stock for this firm?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...