Y Company’s preferred dividend is P 25 per share. The market price of the preferred stock is P 130 per share with flotation cost of P 5 per share. Income taxes are 30% What is the cost of preferred stock? a. 20% b. 14% c. 10%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Y Company’s preferred dividend is P 25 per share. The market price of the preferred stock is P 130 per share with flotation cost of P 5 per share. Income taxes are 30% What is the cost of preferred stock?

a. 20%
b. 14%
c. 10%
d. 8%

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