Determine the current yield or cost of preferred stock

Reference no: EM1353547

Ten years ago, Stigler Company issued $100 par value preferred stock yielding 8%. The preferred stock is now selling for $97 per share. What is the current yield or cost of the preferred stock? (disregard flotation cost)

a. 7.76%
b. 8%
c. 8.25%

Reference no: EM1353547

Questions Cloud

Determine the maximum amount for payment : The Bradshaw Corporation's most recent dividend was $6.75. The historical dividend payment by the firm shows a constant growth rate of 5% per year.

Adjust the following graph to show the changes in the market : Adjust the following graph to show the changes in the market between 2001 and 2002.

Advantages of logging more information to alerts file : What are the advantages of logging more information to the alerts file? What are the disadvantages of logging more information to the alerts file?

Cultural limitations associated with assessment : What are at least two cultural limitations associated with assessment and treatment? Can you discuss the use or misuse of assessment instruments, therapy techniques, research results, or any other facet of clinical practice

Determine the current yield or cost of preferred stock : Ten years ago, Stigler Corporation issued $100 par value preferred stock yielding 8 percent. The preferred stock is now selling for $97 per share.

Statements that make variable-s field-s values consistent : Write one or two statements that make this variable's field's values consistent with the mathematical notion of "origin".

Calculate annual interest rate : A man walks into a New York City bank and asks for a $5000 loan; provide his Ferrari, worth $250,000 as collateral. He says loan officer that he requires the money for two weeks for an important venture.

Illustrate what is the market elasticity of demand : Illustrate what is the market elasticity of demand. What is your elasticity of demand in this Cournot oligopoly.

Define fully whether inez is obligated to pay for the boat : When the boat is ready for delivery and Inez learns of the delegation and refuses to accept delivery, even though the boat is built to specifications and Define fully whether Inez is obligated to accept and pay for the boat

User Account

All Pages