Cost of the Preferred Stock Assignment | Homework For You
June 9th, 2020
If a firm pays a $5.50 dividend on preferred stock selling for $62.00 and paid a 3% flotation rate, what is the return to the investor (Kps) and the cost of the preferred stock to the company?
A. return: 8.87% cost: 9.15%
OB return: 9.15% cost: 8.87%
C. return: 2.97% cost: 8.87%
D. return: 8.87% cost: 8.87%
E. return: 8.87% cost: 2.97%. Get Finance homework help today