Determining the cost of preferred stock
Question: Topstone Industries' preferred stock pays an annual dividend of $4.00 per share. When issued, the shares sold for their par value of $100 per share. What is the cost of preferred stock if the current price is $125.00?
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When issued, the shares sold for their par value of $100 per share. What is the cost of preferred stock if the current price is $125.00?
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