What is the cost of preferred stock

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Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semiannually. The bond is currently selling for $908.72 per $1000 bond. What is the cost of debt?

Your company has preferred stock that has an annual dividend of $3. If the current price is $25, what is the cost of preferred stock?

Reference no: EM131324067

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