fin 1-2
Darkon Inc.’s perpetual preferred stock sells for $86.50 per share, and it pays an $8.30 annual dividend. Assuming zero flotation costs, what is the company’s cost of preferred stock for use in calculating the WACC? Assume that you are a consultant to Tambor Inc., and you have been provided with the following data: D1 = $0.80; P0 = $27.50; and g = 9.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?
Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade. Order now and Get a 15% Discount! Use Coupon Code "Newclient"
