What is the cost of the preferred stock

Assignment Help Financial Management

Reference no: EM131525653

You work for a company with 30,000 of 4% coupon bonds, 20,000 $50 par $2.50 preferred stock, and 1,000,000 common shares outstanding with a market price of $22.00 per share and a required rate of return of 14%. What is the cost of the preferred stock if the stock trades at $45.00?

Please show all work.

Reference no: EM131525653

Questions Cloud

What would be your total real return on investment : when the required return on the bonds is 7.75 percent. If the inflation rate was 3.6 percent over past year, what would be your total real return on investment.

What is the cost of the preferred stock : What is the cost of the preferred stock if the stock trades at $45.00?

Calculate the beta and standard deviation of stock : Calculate the beta and standard deviation of Stock I. Calculate the beta and standard deviation of Stock II.

What is portfolio beta for a portfolio of five stocks : What is the portfolio beta for a portfolio of five stocks A, B, C, D, and E. with required rates of return of 10%, 12%, 11%, 9%, and 14%, respectively and betas

What is the cost of the preferred stock : What is the cost of the preferred stock if the stock trades at $45.00?

What was average real return on the stock : What was the average nominal risk premium on the stock? What was the average real return on the stock?

What would be the credit card balance at end of first year : what would be the credit card balance at the end of the first year?

How much should you charge for option : The risk-free rate of interest is 5 percent per year, compounded continuously. How much should you charge for the option?

Risk-free asset-you must invest all of your money : You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money.

User Account

All Pages