What is the company cost of preferred stock and rps

Assignment Help Financial Management

Reference no: EM131339611

Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $74.50 per share with an annual dividend of $4.00 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps? Round your answer to two decimal places.

Reference no: EM131339611

Questions Cloud

What is company cost of equity capital : David Ortiz Motors has a target capital structure of 30% debt and 70% equity. The yield to maturity on the company's outstanding bonds is 9%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 10.26%. What is the comp..

Target capital structure : Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 30%, rd = 6%, rps = 7.9%, and rs = 14%. If Shi has a target capital structure of 30% debt, 5% preferre..

What is estimated cost of common equity using capm : Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 3.5% and the yield on a 10-year T-bond is 6%. The market risk premium is 7%, and the return on an average stock in the market last year was 15%. What is the estimated cost of comm..

Considering three-year expansion project-what is project npv : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.82 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. If the required return is 12 ..

What is the company cost of preferred stock and rps : Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $74.50 per share with an annual dividend of $4.00 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps?

Provide similar yield to maturity : LL Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt?

What is company cost of preferred stock : Barton Industries can issue perpetual preferred stock at a price of $58 per share. The stock would pay a constant annual dividend of $3.70 per share. If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock?

What is the firm after-tax cost of debt : 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,200 face value and a 8% coupon, semiannual payment ($48 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what ..

Explain how relative frequencies relate to probabilities : Explain how relative frequencies relate to probabilities - how would probability analysis help you set a budget for the 2nd year you lived in this city?

User Account

All Pages