Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $97 and a dividend rate of 7.3%. The stock is selling for $63.23 in the market. What is the cost of preferred stock for Kyle?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 21MC
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What is the cost of preferred stock for Kyle?
11.55 % (Round to two decimal places.)
Points: 0 of 1
Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The
preferred stock has a par value of $97 and a dividend rate of 7.3%. The stock is selling for $63.23
in the market. What is the cost of preferred stock for Kyle?
****
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Transcribed Image Text:What is the cost of preferred stock for Kyle? 11.55 % (Round to two decimal places.) Points: 0 of 1 Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $97 and a dividend rate of 7.3%. The stock is selling for $63.23 in the market. What is the cost of preferred stock for Kyle? **** Save
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