Issue perpetual preferred stock at a price

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1. Columbus Veterinary Supplies can issue perpetual preferred stock at a price of $90 a share. The issue is expected to pay a constant annual dividend of $5.85 a share. Ignoring flotation costs, what is the company's cost of preferred stock,rps? Express your answer in percentage (without the % sign) and round it to two decimal places.

2. Bouchard Company's stock sells for $21 per share, its last dividend (D0) was $1.00, and its growth rate is a constant 5 percent. What is its cost of common stock, rs? Express your answer in percentage (without the % sign) and round it to two decimal places.

Reference no: EM131429023

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Issue perpetual preferred stock at a price : 1. Columbus Veterinary Supplies can issue perpetual preferred stock at a price of $90 a share. The issue is expected to pay a constant annual dividend of $5.85 a share. Ignoring flotation costs, what is the company's cost of preferred stock,rps? E..
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