If investors require a 10% after-tax return from a firm's preferred stock and its dividend is $5.00 per share, what is the price per share assuming a marginal tax rate of 25% and no flotation costs?
A) $50.00
B) $12.50
C) $37.50
D) $18.75
E) $20.00
A
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Marie and Marti are partners who solely own M and M Florist. As owners, they can
A. claim only limited liability. B. avoid taking any legal responsibility for M and M. C. sell stock in their company. D. claim an organization as their legal property. E. decide not to pay a dividend to their stockholders.
The ________ is the rate of return required by the market suppliers of capital in order to attract their funds to the firm
A) yield to maturity B) internal rate of return C) cost of capital D) modified internal rate of return
A stock split commonly increases the stock's per share par value
Indicate whether the statement is true or false
Safety stocks are extra inventories that can be drawn down when actual lead times and/or usage rates are greater than expected
Indicate whether the statement is true or false