Lewis, Schultz, and Nobel Development Corp. has an after-tax cost of debt of 5%. With a tax rate of 30%, what is the yield on the debt?
Ten years ago, Stigler Company issued $100 par value preferred stock yielding 7%. The preferred stock is now selling for $105 per share. What is the approximate current yield or cost of the preferred stock? (Disregard flotation costs.)
A firm's preferred stock pays an annual dividend of $2.50, and the stock sells for $65. Flotation costs for new issuances of preferred stock are 4.5% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 30%?
Firm X has a tax rate of 30%. The price of its new preferred stock is $68 and its flotation cost is $3.15. The cost of new preferred stock is 8%. What is the firm's dividend.