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    Cost of capital.

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    Company issued $100 par value preferred stock 12 years ago. The stock provided a 9% yield at the time of the issue. The preffered stock is now selling for $72. What is the current yield or cost of preffered stock? (disregard flotation costs)

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    https://brainmass.com/business/working-capital-management/cost-of-capital-47837

    Solution Preview

    At the time of issue the yield was 9%. The par value is $100. The ...

    Solution Summary

    The solution explains how to calculate the cost of a preferred stock

    $2.19