Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
The cost of preferred stock capital for Detroit motors is 0.099.
Preferred stock dividend = $9.76
Trading at a price = $98.06
The return that investors might anticipate receiving on their investment in a company's preferred stock is measured by the cost of preferred stock capital. It is determined by dividing the share price by the annual dividend per share.
Calculating the cost of preferred stock capital -
= Preferred stock dividend / Trading Price
= 9.76 / 98.06
= 0.099.
This means that an investor in the company's preferred stock can expect to receive a return of 9.9% on their investment.
Investors should carefully weigh the cost of preferred stock capital before choosing to purchase a company's preferred shares. They can compare the possible returns of various assets using this information, which gives them an idea of the return they can anticipate receiving on their investment.
Read more about preferred stock on:
https://brainly.com/question/29739867
#SPJ4
Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.
