What is the firm cost of preferred stock

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1. The 8.5 percent preferred stock of ZZZebra Tales is selling for $36 a share. What is the firm's cost of preferred stock if the tax rate is 34 percent and the par value per share is $100?

2. Price of a stock: $106 Strike price of a 6 month put/call: $100 Price of the call: $4 Price of the put: $2 What would you do? Verify reasoning/strategy. Would your answer be different if the price of the call is $8 and the price of the put is $10?

3. The common stock of romper room has a beta of 1.61 and a standard deviation of 27.4 percent. the market rate of return is 13.2 percent and the risk-free rate is 4.4 percent. what is the cost of equity for this firm?

Reference no: EM132061284

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