What is the firm cost of preferred stock

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Reference no: EM132038723

1. A company's perpetual preferred stock currently sells for $43.38 per share, and it pays an annual dividend of $7.41 per share. What is the firm's cost of preferred stock? Input your answer as a decimal rounded to four places.

2. Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $1.27; P0 = $54.07; and g = 3.6% (constant). What is the cost of common from retained earnings based on the dividend growth model approach? Input your answer as a decimal rounded to four places.

Reference no: EM132038723

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