Calculate the cost of the preferred stock

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Reference no: EM131900053

1. Your car dealer is willing to lease you a new car for $319 a month for 72 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 3.9 percent, what is the current value of the lease?

2. Taylor Systems has just issued preferred stock. The stock has a 10?% annual dividend and a $80 par value and was sold at $82.40 per share. In? addition, flotation costs of $7.20 per share were paid. Calculate the cost of the preferred stock. (Round to two decimal places).

Reference no: EM131900053

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