Acompany’s perpetual preferred stock currently sells for $102.50 per share, and it pays 8% annual dividend with a $100 par. if the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. what is the firm's cost of preferred stock? a. 8.22%
b. 9.28%
c. 6.90%
d. 9.53%
e. 7.97%.

The correct answer is "a. 8,22%".

Explanation:

Preferred stock price is $102.50

Preferred dividend is $8.00

Flotation cost 5.00%

We have to calculate the firm cost of preferred stock with the formula

rp= Dp/(Pp(1 −F))

So = rp = 8 / [102,50 × ( 1 - 0,05)] = 8,22%

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.