Question

XYZ Corporation tiene unas acciones preferidas que actualmente se venden por $36 y paga un dividendo perpetuo de $2.60 por acción. El costo de flotación es de $6 por acciones. Calcule el costo de la acción preferida.

Answer 1

The English translation of the problem :-

XYZ Corporation has a preferred stock that currently sells for $ 36 and pays a perpetual dividend of $ 2.60 per share. The float cost is $ 6 per share. Calculate the cost of the preferred action

Given,

Current price = $36

Perpetual dividend = $2.60

Float cost = $6

Solution :-

Cost of preferred stock = Perpetual dividend (current price - float cost)

= $2.60 ($36 - $6)

= $2.60 $30 = 0.0867 or 8.67%