[Anonymous]

Becker Question –

The question says “William can sell 8 percet preferred stock at par value, $105 per share. The cost of issuing and selling the preferred stock is expected to be $5 per share”

How can I get the cost of preferred stock of 8.4% from above statement as the answer did? Can someone show me the calculation? Thanks a bunch.

[Synergiex]

105*0.08 = 8.4

Then you need to subtract issue cost: 105-5= 100

Thus, cost for preferred stock: 8.4/100 = %8.4

Hope that helps…

B - 7/1/2011 ---------> 85
R - 7/28/2011 ---------> 77!!!
A - 10/30/2011---------> 83
F - 11/26/2012 --------> 85

[Anonymous]

Thanks, yes I figured that out as well! appreciate the help!

[Author]

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