Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 3 of 9
AC Ltd. has preferred stock that pays a $1.25 dividend per share and sells for $25 dollars a share. What is the cost of preferred stock?
B. 5%
C. 20%
A. 4.75%
B. 5%
C. 20%
User Contributed Comments 0
You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and interpret the cost of debt capital using the yield-to-maturity approach and the debt-rating approach;
calculate and interpret the cost of noncallable, nonconvertible preferred stock;
CFA® 2024 Level I Curriculum, Volume 4, Module 33.