Your firm is planning to issue preferred stock The stock sells for $115 however, if new stock is issued, the company would receive only $98 The par value of the stock is $100 and the dividend rate is 14 percent What is the cost of capital for the stock to your firm ...

Price of the stock 115 Dividend rate 14 Dividend shou ...

Your firm is planning to issue preferred stock. The stock sells for $115; however, if new stock

Question:

Your firm is planning to issue preferred stock. The stock sells for $115; however, if new stock is issued, the company would receive only $98. The of the stock is $100 and the rate is 14 percent. What is the for the stock to your firm?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...