The cost of preferred stock is determined to be 5%

jagguarpaw January 16, 2017 0 Comments

Question: The cost of preferred stock is determined to be 5%…

The cost of preferred stock is determined to be 5%. The price of the preferred stock was $54/share. What was the dividend per share paid out to a holder of this preferred stock?

The return on a bond is 4% while the return on common is 5%. What is the risk premium?