Dewyco has preferred stock trading at $51 per share. The next preferred dividend of $3 is due in one year. What is Dewyco's cost of capital for preferred stock? The cost of capital for preferred stock is %. (Round to one decimal place.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 14P
Question
Dewyco has preferred stock trading at $51 per share. The next preferred dividend of $3 is due in one year. What
is Dewyco's cost of capital for preferred stock?
The cost of capital for preferred stock is %. (Round to one decimal place.)
Transcribed Image Text:Dewyco has preferred stock trading at $51 per share. The next preferred dividend of $3 is due in one year. What is Dewyco's cost of capital for preferred stock? The cost of capital for preferred stock is %. (Round to one decimal place.)
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