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Wittaler [7]
2 years ago
14

Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a

constant annual dividend of $6.00 a share. What is the company’s cost of preferred stock, ?
Business
1 answer:
labwork [276]2 years ago
8 0

Answer:

the company’s cost of preferred stock is 10.53%.

Explanation:

given information:

perpetual preferred stock = $57.00

a constant annual dividend = $6.00

to determine the company’s cost of preferred stock we can use the following formula

cost of preferred stock = \frac{ annual dividend}{preferred stock}

                                   = \frac{6.00}{57.00}

                                   =10.53%

therefore, the company’s cost of preferred stock is 10.53%.

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Explanation:

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2 years ago
Firms often have the option to expand production at some point in the future, which is known as a(n):_______
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7 0
1 year ago
The following informationis drawn from Royal Industries cash budget
BabaBlast [244]

Answer:

b. $3,000 needed

Explanation:

Given that

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5 0
2 years ago
A major cost of the separation of ownership and control of corporations is that the managers of the corporation may sometimes ac
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Answer:

a. vote to replace the board of directors who can replace the self-interested managers

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In a corporations in which the major aim is to promote the interest of the shareholders, there is bound to be class of interest between the managers and the shareholders.

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