A company's perpetual preferred stock has a par value of $75 million and pays a dividend rate
Fantastic news! We've Found the answer you've been seeking!
Question:
A company's perpetual preferred stock has a par value of $75 million and pays a dividend rate of 6.75% per year. The company's tax rate is 37%. If the preferred stock's market value is $78.2 million, what is the company's annual cost of preferred stock financing?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date: