A company's $100 par value preferred stock with a dividend rate of 15% per year is currently priced at $105.85 per share. The company's earnings are expected to grow in an annual rate of 3% for the foreseeable future.What is  The cost of the company's preferred stock is closest ?

 

Answer rating: 100% (QA)

To calculate the cost of the companys preferred stock we can use the dividend discount mo... View the full answer