What is bank cost of preferred stock

Assignment Help Financial Management

Reference no: EM131360794

Holdup Bank has an issue of preferred stock with a $4.95 stated dividend that just sold for $86 per share. What is the bank’s cost of preferred stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of preferred stock %

Reference no: EM131360794

Questions Cloud

Financial issues in particular industry or several companies : Pick any financial issue facing companies in the last two years to research (2013-Present). For example, you may want to write on financial issues in a particular industry or for several companies.

Example of nonfinancial goal : All of the following are disadvantages of decentralization EXCEPT for. From the view of the company as a whole, managers should accept investment projects that earn more than the ________. ________ should not be used for investment decisions. An exam..

Use put call parity relationship-arbitrage opportunities : Use put call parity relationship to find 2 arbitrage opportunities in the real world. We learned in the class that when put call parity relationship is violated, an arbitrage opportunity will arise. You will use this case to illustrate if you can fin..

Calculate the weighted average cost of capital for company : Company A is evaluating a project using the Net Present Value methodology. Management assesses the project as having substantially more risk than the firm’s current activities as a whole. Calculate the Weighted Average Cost of Capital for Company A a..

What is bank cost of preferred stock : Holdup Bank has an issue of preferred stock with a $4.95 stated dividend that just sold for $86 per share. What is the bank’s cost of preferred stock?

Increased to make extending credit slow payers worthwhile : OB 1's credit manager studied its customer and discovered that 92% were prompt payers. The records also showed that 18% of the slow payers and 3%of the prompt payers subsequently defaulted. What is the total expected number of defaults , assuming no ..

Value of stock that has an expected dividend per share : What is the value of a stock that has an expected dividend per share of $4, a beta of 1.3 and constant growth of 5%? The return on the S&P 500 is 10% and the return on US T-Bills is 4%. A. $56.02 B. $57.06 C. $54.25 D. $57.53 E. $58.82 11.

Estimate FCFE for the firm each year for next three years : NanoSoft is a software firm that has never paid a dividend before but its boards of directors is considering whether to initiate dividends and if so, how much to pay. The non-cash working capital is currently 20% of revenues and this ratio is expecte..

Company is considering change in its credit standards : The Company is considering a change in it’s credit standards. The company sells currently 10 000 units of Technotron. The sales price is 20€. The variable cost is 60% of the sales price. The relaxation of the credit standards should result in 15% sal..

User Account

All Pages