What is the component cost of preferred stock

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Reference no: EM131576879

1. Preferred stock has a dividend of $2.35 and is selling for a price of $36.50 per share, what is the component cost of preferred stock?

a. 6.4%

b. 8.3%

c. 12.1%

d. 5.3%

e. 4.5%

2. A project costs $40,000 and return $10,000 per year for 6 years. If the required rate of return is 10% what is the net present value?

a. $1,729

b. $2,111

c. $5,677

d. $3,553

e. $4,499

Reference no: EM131576879

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