JSJ has 50,000 shares of 8.5% preferred stock outstanding, trading at $83 per share, and faces...
JSJ has 50,000 shares of 8.5% preferred stock outstanding, trading at $83 per share, and faces a tax rate of 35%. What is JSJ's component cost for preferred equity?
Homework Answers
Assuming the par value of $100, the preferred stock dividend is =$8.5
Cost of preferred stock =8.5/83 =10.24%
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