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Igoryamba
1 month ago
6

Bosio Inc.'s perpetual preferred stock sells for $102.50 per share, and it pays an $8.50 annual dividend. If the company were to

sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
Business
1 answer:
harina [3.1K]1 month ago
7 0

Respuesta:

8.38%

Explicación:

Datos proporcionados

Dividendo anual = $8.5

Acciones preferentes perpetuas = $102.50

Costo de flotación = 4.00%

El cálculo del costo de la acción preferente se muestra a continuación:-

Costo de la acción preferente = Dividendo anual - (Acciones preferentes perpetuas - (Acciones preferentes perpetuas × porcentaje de costo de flotación))

= $8.5 ÷ ($102.50 - ($102.50 × 0.04))

= $8.5 ÷ ($102.50 - $4.1)

= $8.5 ÷ $101.4

= 8.38%

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