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stock turnover rate is calculated as:

=cost of good sold/average stock

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14y ago
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12y ago

Micro Spinoffs also has preferred stock outstanding. The stock pays a dividend of $4 per share, and the stock sells for $120. What is the cost of preferred stock?

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Q: How do you calculate the cost of preferred stock?
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Which is a characteristic of the cost of preferred stock?

Preferred stock is valued as a perpetuity


For the purpose of calculating the cost of capital the capital components are what?

The principal components taken into account to calculate the cost of capital are the following: The dollar cost of debt, the dollar cost of preferred stock, and the dollar cost of common stock.


How do you calculate the after-tax cost of financing?

THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?


How do you calculate the after tax cost of financing?

THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?


The cost of preferred stock is equal to?

the preferred stock dividend divided by market price


Which security tends to have a greater after tax cost to the insurer debt or preferred stock?

preferred stock, because its divident payments are not tax deductible


Firm X has a tax rate of 30 The price of its new preferred stock is 63 and its flotation cost is 3.15 The cost of new preferred stock is 12 What is the firm's dividend?

It's 6%.


How do you calculate a direct cost of sales in a business plan?

Cost of sales = opening stock + purchases-closing stock Cost of sales = opening stock + purchases-closing stock


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


Why is the cost of debt normally lower than the cost of preferred stock?

Simple answer is interst is tax deductible.


If flotation cost go down the cost of new preferred stock will go up or down?

go down


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%