1. Sixth Fourth Bank has an issue of preferred stock with a $6.25 stated dividend that just sold for $108 per share. What is the bank’s cost of preferred stock? Calculating Cost of Preferred Stock:
2. Reliable Cars has sales of $3,820, total assets of $3,450, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity?
3. Does adding debt increase or decrease the flexibility of a healthcare provider? Why?