Answer:
you said you would be able and would be interested to see if you can help us with the math and how you would do this is the Joule and what is its own words of
Answer:
18.87%
Explanation:
The computation of the cost of preferred stock is shown below:
As we know that
The cost of preferred stock = Preferred dividend ÷ (issue price per share - flotation costs per share)
where,
Preferred dividend is
= 100 × 5%
= $5
Issued price per share is $28
And, the flotation cost is $1.50
So, the cost of preferred stock is
= $5 ÷ ($28 - $1.50)
= 18.87%
We simply applied the above formula
Answer: 1.167
Explanation:
From the question, we are informed to calculate the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%. This would go thus:
Beta = (stock return - riskfree rate) / (market return - riskfree rate)
= (10% - 3%) / (9% - 3%)
= 7% / 6%
= 0.07 / 0.06
=1.167