What is the cost of preferred stock pricing

Assignment Help Financial Management
Reference no: EM131013674

The preferred stock of Gator Ind. sells for $35.87 and pays $2.76 per year dividends. What is the cost of preferred stock pricing? If Gator were to issue 446000 more preferred shares just like the ones outstanding could they sell them for $35.87 a share but incur flotation costs of $2.88 per share? What are the flotation costs for issuing the preferred shares and ow should this cost be incorporated into the NVP of the project being financed?

Reference no: EM131013674

Questions Cloud

A synchronous machine has been synchronised : A synchronous machine has been synchronised with an infinite bus. Now, without changing the field current, the machine is made to deliver real power to the bus. Will it at the same time, generate or consume reactive power?
Firm estimates that its cost for employer sponsored : An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000 next year and increase at 11% per year for the next 5 years. The company CFO wants to budget a uniform amount each year to cover these costs. If the ..
Show that for a transverse electromagnetic wave : Show that for a transverse electromagnetic wave, the voltage between the conductors and the current along the conductors in a given transverse plane are uniquely defined in terms of the electric and magnetic fields, respectively, in that plane.
Show that for a salient-pole synchronous generator : Show that for a salient-pole synchronous generator, the per phase reactive power in terms of power angle d and for a lagging power factor, is given by Also determine the maximum reactive power Q, the generator can deliver with fixed excitation. Negle..
What is the cost of preferred stock pricing : The preferred stock of Gator Ind. sells for $35.87 and pays $2.76 per year dividends. What is the cost of preferred stock pricing? What are the flotation costs for issuing the preferred shares and ow should this cost be incorporated into the NVP of t..
Unlike vertical integration decisions : You are about to purchase a used car. What kinds of threats do you face in this purchase? What can you do to protect yourself from these threats? How is buying a car like and unlike vertical integration decisions?
Find the equilibria algebraically : Find the equilibria algebraically. Apply the Stability Test/Slope Criterion A each of the equilibria you found in (a). What can you conclude?
How does a government approved low inflation mandate : How does a government approved low inflation mandate for the Bank of Canada help ensure the independence of the Bank of Canada? How does this low inflation mandate impose a constraint on the Government of Canada's ability to run large and persistent ..
Explain the basic aspects of humanistic theory : Examine the relationship of biological factors to Maslow's theory of personality. Explain the basic aspects of humanistic theory that are incompatible with biological explanations of personality

Reviews

Write a Review

Financial Management Questions & Answers

  Playing the stock market is like gambling

Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.

  What will a share of stock sell for today

Storico Co. just paid a dividend of $2.00 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divid..

  Direct material used during the period amounted

Prepare a schedule of cost of goods manufactured. Prepare a schedule of cost of goods sold.

  Write a check to ]aural

Successive loan deposited in a checking account and no banks keeping any excess reserves -  suppose First Main Street Bank loans out all of its new excess reserves to Kristen, who immediately uses the funds to write a check to ]aural.

  Calculate payback period-net present value of proposed mine

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. Construct a spreadsheet to calculate the payback period, internal rat..

  Manufactures two products called alpha and beta

Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. How many pounds of raw material are needed to make one unit of Alpha and ..

  Why do the differences in the pvs occur

Find the present value of $700 due in the future under each of these conditions: 10% nominal rate, semi annual compounding, discounted back 5 years. Why do the differences in the PVs occur?

  What is the future value of these cash flows

If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 14 percent?  What is the future value at an interest rate of 21 percent?

  An investment has a required return

An investment has a required return of 13 percent. The cash flows, in order, are -$42,000 (initial cost), $16,500 (year 1 CF), $28,400 (year 2 CF) and $7,500 (year 3 CF). Based on IRR, should this project be accepted?

  Calculate the average daily balance and finance charge

Calculate the average daily balance and finance charge.

  Different between order and delivery

Ticho Gas and Electric is required to carry a minimum of 20 days’ average coal usage, which is 100 tons of coal. It takes10 days between order and delivery. At what level of coal would TG&E reorder?

  What is the default premium on this bond

A zero coupon bond has a beta of 0.15 and promises to pay $1,000 next year with a probability of 97%. If the bond defaults, it will pay nothing. One year Treasury securities are yielding 5%, and the equity premium is 7%. Refer to the information abov..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd