Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.

Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of
preferred stock, rp? Round your answer to two decimal places.
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