What is the cost of the preferred stock

Assignment Help Finance Basics
Reference no: EM133616044

Problem: Long Pond Inc plans to issue some $70 par preferred stock with a 5% dividend. A similar stock is selling on the market for $85. Long Pond must pay flotation costs of 7% of the issue price. What is the cost of the preferred stock?

Reference no: EM133616044

Questions Cloud

How healthcare organizations incorporate holistic health : Example of how healthcare organizations incorporate holistic health and holistic medicine concepts in to their health delivery.
What will be next years earnings per share : If Rowell reinvests retained earnings in projects whose average return is equal to stock's expected rate of return, what will be next year's earnings per share?
Identify 2 strengths in the naranjo family-as-a-whole from : Identify 2 strengths in the naranjo family-as-a-whole from the movie tortilla soup and explain your rationale
Share how the presentation went with the family : Share how the presentation went with the family in the Family Development and Family Nursing Assessment reflection
What is the cost of the preferred stock : A similar stock is selling on the market for $85. Long Pond must pay flotation costs of 7% of the issue price. What is the cost of the preferred stock?
What is the value of ccc without leverage : Cliff's Crypto Currency (CCC) is a start-up indtroducing a new crytpo currency trading platform. What is the value of CCC without leverage?
What is the best assessment question for the nurse : what is the best assessment question for the nurse to ask? a. "Have you been exposed to anyone with an infectious illness
What is the npv of the acquisition : RiverRocks, whose WAGE is 11.2%, is considering an acquisition of Raft Adventures. What is the NPV of the acquisition?
What is this resource about perspectives of older adults : What is this resource about Perspectives of older adults of low socioeconomic status on the post-hospital transition.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the constant dollar interest rate for a periodic int

What is the constant dollar interest rate for a periodic interest rate of 9% and an inflation rate of 4%?

  Discuss problem of the beverly hills

Beverly Hills started a paper route on January 1, 2004. Every three months, she deposits $300 in her bank account, which earns 8 percent annually.

  How would anderson account for the transaction

Anderson Co., which has assets of $ 1,000 and liabilities of $ 400, acquires Genie Co. Anderson determines the fair value of the assets of Genie is $ 200.

  Calculate the expected return of the portfolio

Calculate the expected return of the portfolio. Give your answer as a percentage per annum to 1 decimal pla

  What is the value of the bond

1. Hamilton, Inc. bonds have an 8 percent coupon rate. The interest is paid semiannually, and the bonds mature in 5 years. Their par value is $1,000.

  Data collection and analysis

what would your intentions be with regard to the data collection and analysis and what would you expect the results to show?

  Find what is the project net present value

A project has annual cash flows of $7,000 for the next 10 years and then $10,000 each year for the following 10 years. The IRR of the 20-year project is 10.98%.

  What are five ways a property manager

What are five ways a property manager can reduce the risk the owner of a building faces?

  The tax rate is 35 percent and we require a 15 percent

we are evaluating a project that costs 924000 has an eight-year life and has no salvage value. assume that depreciation

  What was the flotation cost as a percentage of funds raised

The initial offering price was $35.10 per share, and the stock rose to $42.40 per share in the first few minutes of trading. Bostitch paid $912,000 in legal and other direct costs and $264,000 in indirect costs.

  How has the revenue mix of starbucks changed

How has the revenue mix of Starbucks changed from 2009 to 2012? Relate these changes to Starbucks' business strategy.

  Ebersoll mining has 6 million in sales its roe is 15 and

ebersoll mining has 6 million in sales its roe is 15 and its total assets turnover is 1.9x. the company is 75 equity

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd