Ask Question
17 July, 09:58

Torch Industries can issue perpetual preferred stock at a price of $71.00 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.

+2
Answers (1)
  1. 17 July, 10:25
    0
    the company's cost of preferred stock, rp is = 9.15%

    Explanation:

    step 1. Consider the following formula.

    Cost of preferred stock = annual dividend / Price * 100

    Step 2. Set the values of the variables.

    = $ 6.5/$ 71*100

    step 3. Solve.

    = 9.15%

    Answer : 9.15 %
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Torch Industries can issue perpetual preferred stock at a price of $71.00 a share. The stock would pay a constant annual dividend of $6.50 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers