Determining the Cost of Capital: Cost of Preferred Stock
The cost of preferred stock, r...
Business, 16.04.2020 00:11 yungkxng57
Determining the Cost of Capital: Cost of Preferred Stock
The cost of preferred stock, rp, used in the weighted average cost of capital equation is calculated as the preferred dividend, Dp, divided by the current price of the preferred stock, Pp. ,tax adjustment is made when calculating rp because preferred dividend aren't tax deductible; so the tax savings are associated with preferred stock.
Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $58 per share. The stock would pay a constant annual dividend of $3.60 per share. If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock? Round your answer to 2 decimal places.
%
Answers: 2
Business, 21.06.2019 15:30
What is "staffing level"? a) the practice of assigning the same number of workers to each department b) the average educational level attained by employees of a business c) the rank above cashier d) the number of workers assigned to jobs at a particular time
Answers: 2
Business, 22.06.2019 23:30
Each state’s organizational structure is guided by the federal government.true or false?
Answers: 1
Business, 23.06.2019 08:00
Which of the following is a benefit of a hat? it has a sports team logo on it. it makes the wearer look cool. it is red. it costs $12.
Answers: 2
Business, 23.06.2019 12:50
Can you see any pitfalls or disadvantages to using feedly to organize your online content sources?
Answers: 1
Chemistry, 17.04.2021 21:40
English, 17.04.2021 21:40
History, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40
Health, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40
History, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40
Computers and Technology, 17.04.2021 21:40
Mathematics, 17.04.2021 21:40