Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 3.80 percent that sells for $89.57 per share. If the par value is $100, what is the cost of the company's preferred stock?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 3.80 percent that sells for $89.57 per share. If the par value is $100, what is the cost of the company's preferred stock?

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