Answered: Preferred stock of Ford Motors pays a…

Preferred stock of Ford Motors pays a dividend of $3 each year and trades at a price of $35. What is the cost of preferred stock capital for Ford? A. 11.1% B. 8.6% C. 9.4% D. 10.3%

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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Question

Preferred stock of Ford Motors pays a dividend of $3 each year and trades at a price of $35. What is the cost of preferred stock capital for Ford?
A. 11.1%
B. 8.6%
C. 9.4%
D. 10.3%

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