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Mrrafil [7]
3 years ago
7

Global Inc. Has a preferred share issue outstanding with a current price of $26.80. The firm is expected to pay a dividend of $1

.90 per share a year from today. What is the firm's cost of preferred equity?
Business
1 answer:
kondor19780726 [428]3 years ago
4 0

Answer:

7.09 %

Explanation:

Cost of preferred equity = Dividend  / Market Price x 100

therefore,

Cost of preferred equity = $1.90 / $26.80 x 100 = 7.09 %

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