(Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $35.33 a share and pays $2.45 in dividends annually. What is the firm's cost of capital for the preferred stock? The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)

(Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $35.33 a share and pays $2.45 in dividends annually. What is the firm's cost of capital for the preferred stock? The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)

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

Problem 14P

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(Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $35.33 a share and pays $2.45 in dividends annually. What is the firm's cost of capital for the
preferred stock?
The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)

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