Please answer all or none! Thank youJ a.What is the cost of the following prefer

Question

Please answer all or none! Thank youJ

a.What is the cost of the following preferred stock? Dividend 5.41 per share; Price 48.73 per share.

b. What is the cost of the following preferred stock? Price per share: 87.77; Dividend: 3.45.

c. What is the cost of the following common stock? Growth rate 8%; Dividend $0.75 per share; Price 32.50 per share.

d. What is the cost of the following common stock? Dividend 3.29 per share; Price 38.95 per share; growth rate 3%.

e. The cost of this bond is what percentage? Price $1,249.00; Coupon 8%; Yield 9%; tax rate 31%.

f. What is the cost of this bond? Yield 12%. tax rate 22%.

Explanation / Answer

a. cost of preferred stock = 5.41/48.73 = 11.10%

b. cost = 3.45/87.77 = 3.93%

c. cost = 0.75*1.08/32.5 + 8% = 10.49%

d. cost = 3.29*1.03/38.95 + 3% = 11.70%

e. cost = 9*0.69% = 6.21%

f. cost = 12% * 0.78 = 9.36%

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.