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Firm X has a tax rate of 30% The price of its new preferred stock is $75 and its flotation cost is $3 15 The cost of new preferred stock is 8% What is the firm's dividend

Firm X has a tax rate of 30%. The price of its new preferred stock is $75 and its flotation cost is $3.15. The cost of new preferred stock is 8%. What is the firm's dividend? A) $4.03 B) $7.56 C) $5.75 D)S7.I8 Ten years ago. Stigler Company issued $100 par value preferred stock yielding 6%. The preferred stock is now selling for $102 per share. What is the approximate current yield or cost of the preferred stock? (Disregard notation costs.) A) 8% B) 7.76% C) 5.9% D) There is not enough information to answer the question. Given an optimal capital structure that is 50% debt and 50% common stock, calculate weighted average cost of capital for the company given the following additional information: A) More than 8%. B) More than 6% and less than 7%. C) More than 7% and less than 8%. D) Less than 6%.

 

Apr 06 2020 View more View Less

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