Question

RocoPo Corp. had issued preferred stock with a par value of $100 and each share pays...

RocoPo Corp. had issued preferred stock with a par value of $100 and each share pays 6% dividend annually. Currently, each share of this preferred stock is trading at $70. What is the company's cost of preferred stock?

When answering this problem enter your answer using percentage notation but do not use the % symbol and use two decimals (rounding). For example, if your answer is 0.10469 then enter 10.47; if your answer is 10% then enter 10.00

Your Answer:

Homework Answers

Answer #1

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an...
Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of ​$4.00 next year to its shareholders and plans to increase the dividend annually at the rate of 2.0​%. It currently has 1,000,000 common shares outstanding. The shares currently sell for ​$16 each. Easy Car Corp. also has 30,000 semiannual bonds outstanding with a coupon rate of 7​%, a maturity of 28 ​years, and a par value of ​$1,000. The bonds currently...
Allison Corp. has just issued nonconvertible preferred stock​ (cumulative) with a par value of​ $20 and...
Allison Corp. has just issued nonconvertible preferred stock​ (cumulative) with a par value of​ $20 and an annual dividend rate of​ 4.25%. The preferred stock is currently selling for​ $18.75 per share. What is the annual yield or return​ (r) on this preferred​ stock?
TinTan Inc. is a appliance manufacturer in the USA. The company currently has 2,000,000 common shares...
TinTan Inc. is a appliance manufacturer in the USA. The company currently has 2,000,000 common shares outstanding. The shares currently sell for ​$11 each. The company paid an annual dividend of ​$4.00 last year to its shareholders and plans to increase the dividend annually at the rate of 5.0​%. TinTan Inc. also has 10,000 semiannual bonds outstanding with a coupon rate of 6​%, a maturity of 28 ​years, and a par value of ​$1,000. The bonds currently have a yield...
TinTan Inc. is a appliance manufacturer in the USA. The company currently has 2,000,000 common shares...
TinTan Inc. is a appliance manufacturer in the USA. The company currently has 2,000,000 common shares outstanding. The shares currently sell for ​$12 each. The company paid an annual dividend of ​$3.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0​%. TinTan Inc. also has 20,000 semiannual bonds outstanding with a coupon rate of 10​%, a maturity of 25 ​years, and a par value of ​$1,000. The bonds currently have a yield...
The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The...
The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.60 on this stock. What is the current price of this preferred stock given a required rate of return of 12.8 percent? (Round answer to 2 decimal places, e.g. 15.25.) Current price $enter the current price of the preferred stock rounded to 2 decimal places
In 2018, Libra Sdn Bhd issued a RM100 par value preferred stock which pays a 7...
In 2018, Libra Sdn Bhd issued a RM100 par value preferred stock which pays a 7 percent annual dividend. The company requires a 5 percent rate of return. What price would you be willing to pay for a share of the preferred stock if you receive your first dividend one year from now? If the current market is selling this preferred stock at RM12.50, will you buy? Explain your decision.please write elaborately
(a) Company A has issued perpetual preferred stock with a par value of $100. The stock...
(a) Company A has issued perpetual preferred stock with a par value of $100. The stock pays an annual dividend of $6 and its current price is $60. (i) What is the dividend yield of Company A’s preferred stock? (ii) What is the total return of holding Company A’s preferred stock for year 1?   (b) Company B has just paid a dividend of $2.45 per share. The company will increase its dividend by 20% next year and then reduce its...
(Preferred stock value) McDonald’s Corp. preferred stock pays an annual dividend of $5 per share. Calculate...
(Preferred stock value) McDonald’s Corp. preferred stock pays an annual dividend of $5 per share. Calculate the value of one share to an investor who requires a rate of return of: (USING EXCEL) a. 6% b. 9% c. 12% d. 15%
A share of preferred stock has a par value of $20.  It pays a 4% dividend. If...
A share of preferred stock has a par value of $20.  It pays a 4% dividend. If the required return is 7%​, what is the price of the​ stock?  (Round to the nearest​ cent.)
On January 1, 2020, Castaway Corp. issued 5,000 shares of preferred stock ($15 par value) at...
On January 1, 2020, Castaway Corp. issued 5,000 shares of preferred stock ($15 par value) at $45 per share. Each share of preferred stock is redeemable at the option of the stockholder at $45 per share. On September 1, 2020, preferred shareholders holding 1,000 shares of preferred stock redeemed their stock. The entry recorded by Castaway Corp. on September 1, 2020, would include the following: A. No net change to stockholders’ equity. B. A decrease to retained earnings for $5,000....