SlideShare a Scribd company logo
Please help I am taking a final right now: Jurgen Vandersly is CFO of Yurii Corp and needs to
find the cost of preferred capital. The preferred stock h?s a dividend of $0.31. Today, the shares
sell for capital for Yurii ? Yuri is in the 50% tax bracket. the shares sell for $4.25 each. What is
the appropriate cost of preferred equity o 5.5% 7.29% 2.75% o 3.6%
Solution
Answer:7.29%
Cost of preferred Stock = Annual Dividend on preferred stock / Current Market price of
preferred stock
Cost of preferred Stock = $0.31 / $4.25 = 0.0729 or 7.29%

More Related Content

More from arsmobiles

Define nonconcordant variation Why does nonconcordant variation mak.pdf
Define nonconcordant variation Why does nonconcordant variation mak.pdfDefine nonconcordant variation Why does nonconcordant variation mak.pdf
Define nonconcordant variation Why does nonconcordant variation mak.pdf
arsmobiles
 
Describe the operation of a tubular bowl centrifugeSolutionTub.pdf
Describe the operation of a tubular bowl centrifugeSolutionTub.pdfDescribe the operation of a tubular bowl centrifugeSolutionTub.pdf
Describe the operation of a tubular bowl centrifugeSolutionTub.pdf
arsmobiles
 
Could you help me with this question Thanks so much!Let T be an e.pdf
Could you help me with this question Thanks so much!Let T be an e.pdfCould you help me with this question Thanks so much!Let T be an e.pdf
Could you help me with this question Thanks so much!Let T be an e.pdf
arsmobiles
 
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdfBriefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
arsmobiles
 
List for a company you either work or are familiar with, the interna.pdf
List for a company you either work or are familiar with, the interna.pdfList for a company you either work or are familiar with, the interna.pdf
List for a company you either work or are familiar with, the interna.pdf
arsmobiles
 
Write a C program that uses a recursive function to print a triangle .pdf
Write a C program that uses a recursive function to print a triangle .pdfWrite a C program that uses a recursive function to print a triangle .pdf
Write a C program that uses a recursive function to print a triangle .pdf
arsmobiles
 
Which avenue of research is least likely to reveal whether asexual or.pdf
Which avenue of research is least likely to reveal whether asexual or.pdfWhich avenue of research is least likely to reveal whether asexual or.pdf
Which avenue of research is least likely to reveal whether asexual or.pdf
arsmobiles
 
When testing the difference between two population means, the varian.pdf
When testing the difference between two population means, the varian.pdfWhen testing the difference between two population means, the varian.pdf
When testing the difference between two population means, the varian.pdf
arsmobiles
 
IT Project Management1. Please compare and contrast a traditional .pdf
IT Project Management1. Please compare and contrast a traditional .pdfIT Project Management1. Please compare and contrast a traditional .pdf
IT Project Management1. Please compare and contrast a traditional .pdf
arsmobiles
 
Whats the relationship between DNA and RNA Whats the relat.pdf
Whats the relationship between DNA and RNA Whats the relat.pdfWhats the relationship between DNA and RNA Whats the relat.pdf
Whats the relationship between DNA and RNA Whats the relat.pdf
arsmobiles
 
What does it mean to destroy something at the molecular level in ter.pdf
What does it mean to destroy something at the molecular level in ter.pdfWhat does it mean to destroy something at the molecular level in ter.pdf
What does it mean to destroy something at the molecular level in ter.pdf
arsmobiles
 
What is a rain shadow, and why does it happenSolutionThe warm.pdf
What is a rain shadow, and why does it happenSolutionThe warm.pdfWhat is a rain shadow, and why does it happenSolutionThe warm.pdf
What is a rain shadow, and why does it happenSolutionThe warm.pdf
arsmobiles
 
Use transformations to graph this function. (Do this on paper. Your t.pdf
Use transformations to graph this function. (Do this on paper. Your t.pdfUse transformations to graph this function. (Do this on paper. Your t.pdf
Use transformations to graph this function. (Do this on paper. Your t.pdf
arsmobiles
 
Understand how radioactive isotopes are used in dating fossilsSo.pdf
Understand how radioactive isotopes are used in dating fossilsSo.pdfUnderstand how radioactive isotopes are used in dating fossilsSo.pdf
Understand how radioactive isotopes are used in dating fossilsSo.pdf
arsmobiles
 
umbrella term for all healthcare plans that focus on reducing the cos.pdf
umbrella term for all healthcare plans that focus on reducing the cos.pdfumbrella term for all healthcare plans that focus on reducing the cos.pdf
umbrella term for all healthcare plans that focus on reducing the cos.pdf
arsmobiles
 
) Code the following class. Hopefully the method names clearly imply.pdf
) Code the following class. Hopefully the method names clearly imply.pdf) Code the following class. Hopefully the method names clearly imply.pdf
) Code the following class. Hopefully the method names clearly imply.pdf
arsmobiles
 
The rate of diffusion (J) depends on several physical factors. Brief.pdf
The rate of diffusion (J) depends on several physical factors. Brief.pdfThe rate of diffusion (J) depends on several physical factors. Brief.pdf
The rate of diffusion (J) depends on several physical factors. Brief.pdf
arsmobiles
 
The mutations that make HIV resistant to specific drugs are usually..pdf
The mutations that make HIV resistant to specific drugs are usually..pdfThe mutations that make HIV resistant to specific drugs are usually..pdf
The mutations that make HIV resistant to specific drugs are usually..pdf
arsmobiles
 
The low density of ice makes it ineffective at insulating water from .pdf
The low density of ice makes it ineffective at insulating water from .pdfThe low density of ice makes it ineffective at insulating water from .pdf
The low density of ice makes it ineffective at insulating water from .pdf
arsmobiles
 
The graph represents a correspondence between x and y. Determine whet.pdf
The graph represents a correspondence between x and y. Determine whet.pdfThe graph represents a correspondence between x and y. Determine whet.pdf
The graph represents a correspondence between x and y. Determine whet.pdf
arsmobiles
 

More from arsmobiles (20)

Define nonconcordant variation Why does nonconcordant variation mak.pdf
Define nonconcordant variation Why does nonconcordant variation mak.pdfDefine nonconcordant variation Why does nonconcordant variation mak.pdf
Define nonconcordant variation Why does nonconcordant variation mak.pdf
 
Describe the operation of a tubular bowl centrifugeSolutionTub.pdf
Describe the operation of a tubular bowl centrifugeSolutionTub.pdfDescribe the operation of a tubular bowl centrifugeSolutionTub.pdf
Describe the operation of a tubular bowl centrifugeSolutionTub.pdf
 
Could you help me with this question Thanks so much!Let T be an e.pdf
Could you help me with this question Thanks so much!Let T be an e.pdfCould you help me with this question Thanks so much!Let T be an e.pdf
Could you help me with this question Thanks so much!Let T be an e.pdf
 
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdfBriefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
Briefly discuss Philippa Foot’s contributions to virtue theory.S.pdf
 
List for a company you either work or are familiar with, the interna.pdf
List for a company you either work or are familiar with, the interna.pdfList for a company you either work or are familiar with, the interna.pdf
List for a company you either work or are familiar with, the interna.pdf
 
Write a C program that uses a recursive function to print a triangle .pdf
Write a C program that uses a recursive function to print a triangle .pdfWrite a C program that uses a recursive function to print a triangle .pdf
Write a C program that uses a recursive function to print a triangle .pdf
 
Which avenue of research is least likely to reveal whether asexual or.pdf
Which avenue of research is least likely to reveal whether asexual or.pdfWhich avenue of research is least likely to reveal whether asexual or.pdf
Which avenue of research is least likely to reveal whether asexual or.pdf
 
When testing the difference between two population means, the varian.pdf
When testing the difference between two population means, the varian.pdfWhen testing the difference between two population means, the varian.pdf
When testing the difference between two population means, the varian.pdf
 
IT Project Management1. Please compare and contrast a traditional .pdf
IT Project Management1. Please compare and contrast a traditional .pdfIT Project Management1. Please compare and contrast a traditional .pdf
IT Project Management1. Please compare and contrast a traditional .pdf
 
Whats the relationship between DNA and RNA Whats the relat.pdf
Whats the relationship between DNA and RNA Whats the relat.pdfWhats the relationship between DNA and RNA Whats the relat.pdf
Whats the relationship between DNA and RNA Whats the relat.pdf
 
What does it mean to destroy something at the molecular level in ter.pdf
What does it mean to destroy something at the molecular level in ter.pdfWhat does it mean to destroy something at the molecular level in ter.pdf
What does it mean to destroy something at the molecular level in ter.pdf
 
What is a rain shadow, and why does it happenSolutionThe warm.pdf
What is a rain shadow, and why does it happenSolutionThe warm.pdfWhat is a rain shadow, and why does it happenSolutionThe warm.pdf
What is a rain shadow, and why does it happenSolutionThe warm.pdf
 
Use transformations to graph this function. (Do this on paper. Your t.pdf
Use transformations to graph this function. (Do this on paper. Your t.pdfUse transformations to graph this function. (Do this on paper. Your t.pdf
Use transformations to graph this function. (Do this on paper. Your t.pdf
 
Understand how radioactive isotopes are used in dating fossilsSo.pdf
Understand how radioactive isotopes are used in dating fossilsSo.pdfUnderstand how radioactive isotopes are used in dating fossilsSo.pdf
Understand how radioactive isotopes are used in dating fossilsSo.pdf
 
umbrella term for all healthcare plans that focus on reducing the cos.pdf
umbrella term for all healthcare plans that focus on reducing the cos.pdfumbrella term for all healthcare plans that focus on reducing the cos.pdf
umbrella term for all healthcare plans that focus on reducing the cos.pdf
 
) Code the following class. Hopefully the method names clearly imply.pdf
) Code the following class. Hopefully the method names clearly imply.pdf) Code the following class. Hopefully the method names clearly imply.pdf
) Code the following class. Hopefully the method names clearly imply.pdf
 
The rate of diffusion (J) depends on several physical factors. Brief.pdf
The rate of diffusion (J) depends on several physical factors. Brief.pdfThe rate of diffusion (J) depends on several physical factors. Brief.pdf
The rate of diffusion (J) depends on several physical factors. Brief.pdf
 
The mutations that make HIV resistant to specific drugs are usually..pdf
The mutations that make HIV resistant to specific drugs are usually..pdfThe mutations that make HIV resistant to specific drugs are usually..pdf
The mutations that make HIV resistant to specific drugs are usually..pdf
 
The low density of ice makes it ineffective at insulating water from .pdf
The low density of ice makes it ineffective at insulating water from .pdfThe low density of ice makes it ineffective at insulating water from .pdf
The low density of ice makes it ineffective at insulating water from .pdf
 
The graph represents a correspondence between x and y. Determine whet.pdf
The graph represents a correspondence between x and y. Determine whet.pdfThe graph represents a correspondence between x and y. Determine whet.pdf
The graph represents a correspondence between x and y. Determine whet.pdf
 

Recently uploaded

Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
adhitya5119
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
TechSoup
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Scholarhat
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
RitikBhardwaj56
 
How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
Celine George
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
GeorgeMilliken2
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Celine George
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
Dr. Shivangi Singh Parihar
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
taiba qazi
 
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
National Information Standards Organization (NISO)
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
David Douglas School District
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
Priyankaranawat4
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
TechSoup
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
NgcHiNguyn25
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
Celine George
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
Katrina Pritchard
 
PIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf IslamabadPIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf Islamabad
AyyanKhan40
 

Recently uploaded (20)

Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...The simplified electron and muon model, Oscillating Spacetime: The Foundation...
The simplified electron and muon model, Oscillating Spacetime: The Foundation...
 
How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17How to Fix the Import Error in the Odoo 17
How to Fix the Import Error in the Odoo 17
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
 
PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.PCOS corelations and management through Ayurveda.
PCOS corelations and management through Ayurveda.
 
DRUGS AND ITS classification slide share
DRUGS AND ITS classification slide shareDRUGS AND ITS classification slide share
DRUGS AND ITS classification slide share
 
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
Pollock and Snow "DEIA in the Scholarly Landscape, Session One: Setting Expec...
 
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School DistrictPride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
 
How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
 
PIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf IslamabadPIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf Islamabad
 

Please help I am taking a final right now Jurgen Vandersly is CFO o.pdf

  • 1. Please help I am taking a final right now: Jurgen Vandersly is CFO of Yurii Corp and needs to find the cost of preferred capital. The preferred stock h?s a dividend of $0.31. Today, the shares sell for capital for Yurii ? Yuri is in the 50% tax bracket. the shares sell for $4.25 each. What is the appropriate cost of preferred equity o 5.5% 7.29% 2.75% o 3.6% Solution Answer:7.29% Cost of preferred Stock = Annual Dividend on preferred stock / Current Market price of preferred stock Cost of preferred Stock = $0.31 / $4.25 = 0.0729 or 7.29%