0
A firm is paying an annual dividend of 2.65 for its preferred stock that is selling for 57.00. There is a selling cost of 3.30. What is the after-tax cost of preferred stock if the firm's tax rate is?
Wiki User
∙ 7y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is the firm's cost of preferred stock if a preferred stock pays an annual dividend of 8.50 a share and sells for 40 a share and the tax rate is 35 percent?
8.5/40=21.25%
Gary Wells Inc plans to issue perpetual preferred stock with an annual dividend of 6.50 per share If the required return on this preferred stock is 6.5 percent at what price should the stock sell?
To answer this question, the appropriate formula is the discounted dividend model without growth which is presented as follows: P = DIV / r where P = price of the stock DIV = the amount of the annual dividend r = the required rate of return Using the above formula: V = $6.50 / 6.5% = $6.50 / 0.065 = $100 The price of the stock would be approximately $100 using the discounted dividend model.
Tunney Industries can issue perpetual preferred stock at a price of 47.50 a share The issue is expected to pay a constant annual dividend of 3.80 a share What is the company's cost of preferred st?
You will use the formula: Cost Preferred= rp = Dp/Vp rp= 3.80/47.50 rp= 0.08 or 8%
What is the meaning of dividend initiation?
First announcement by a firm of an ordinary, taxable, cash dividend payable at the quarterly, semi-annual, or annual frequency to holders of ordinary common stock.
What is the dividend yield of ABC Co Share having face value of Rs100market value of 360 and an annual dividend of Rs10?
Dividend yield = (dividend per share/Market Value per share)*100 = (10/360)*100 = 2.77
What is the firm's cost of preferred stock if a preferred stock pays an annual dividend of 8.50 a share and sells for 40 a share and the tax rate is 35 percent?
8.5/40=21.25%
Tunney Industires can issue perpetual preferred stock at a price of 47.50 per share The stock would pay a constant annual dividend of 3.80 a share What is the company's cost of preferred stock?
.80
Gary Wells Inc plans to issue perpetual preferred stock with an annual dividend of 6.50 per share If the required return on this preferred stock is 6.5 percent at what price should the stock sell?
To answer this question, the appropriate formula is the discounted dividend model without growth which is presented as follows: P = DIV / r where P = price of the stock DIV = the amount of the annual dividend r = the required rate of return Using the above formula: V = $6.50 / 6.5% = $6.50 / 0.065 = $100 The price of the stock would be approximately $100 using the discounted dividend model.
How do you compute dividend yield?
Dividend Yield = Annual Dividend (usually previous 12 months)/Current or Purchase Price.
Ezzell Corporation issued perpetual preferred stock with a 10 percent annual dividend the stock currently yields 8 percent and its par value is 100 dollars what is the stocks value?
Without knowing the age of the stock, it is not possible to assess the value of Ezzell Corporation preferred stock. The par value is $100. If the annual dividend is reinvested the value of holdings would have an 8% increase annually, amalgamated plus an increase for any change in value.
Tunney Industries can issue perpetual preferred stock at a price of 47.50 a share The issue is expected to pay a constant annual dividend of 3.80 a share What is the company's cost of preferred st?
You will use the formula: Cost Preferred= rp = Dp/Vp rp= 3.80/47.50 rp= 0.08 or 8%
What is the meaning of dividend initiation?
First announcement by a firm of an ordinary, taxable, cash dividend payable at the quarterly, semi-annual, or annual frequency to holders of ordinary common stock.
What is the difference between proposed and declared dividend?
Proposed dividend is that which is proposed by the management to be paid to share holders of company.Declared dividend is the dividend which is finalized in annual general meeting to be paid to share holders.
What is the annual dividend divided by the current market?
I don't even know ok!
How are dividends listed for stocks in the newspaper?
Dividend (Div). The rate of annual dividend is shown; it is generally an estimate based on the previous quarterly or semiannual payment.
What is the dividend yield of ABC Co Share having face value of Rs100market value of 360 and an annual dividend of Rs10?
Dividend yield = (dividend per share/Market Value per share)*100 = (10/360)*100 = 2.77
What is Dividend Yield?
The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.
