Torch Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. .10 %

Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
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Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
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Torch Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, r,? Round your answer to two decimal
places.
.10
Transcribed Image Text:еВook Torch Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, r,? Round your answer to two decimal places. .10
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