You are the CFO of Ford (F) and need to raise $168 million to build a new electric pickup truck. You plan to issue preferred stock with a $4.20 yearly dividend. You estimate that the return the market will require for these shares will be 10.0%. How many shares will you have to issue to fund the project?
You are the CFO of Ford (F) and need to raise $168 million to build a new electric pickup truck. You plan to issue preferred stock with a $4.20 yearly dividend. You estimate that the return the market will require for these shares will be 10.0%. How many shares will you have to issue to fund the project?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 9MC
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