A company has preferred stock outstanding. It issued the shares at $25 per share 5 years ago. The preferred shares pay a quarterly dividend of $.25 per share; assuming the company remains in business, expect dividends to be paid forever. The preferred stock traded today at $20 per share. What is the current cost of preferred stock?

Answer rating: 100% (QA)

Current cost of preference shares DividendCurrent price of pref shares Dividend on yearly basis 0254 1 Price of preference share ... View the full answer