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31 May, 07:04

Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 5.70 percent that sells for $95.66 per share. If the par value is $100, what is the cost of the company's preferred stock?

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  1. 31 May, 07:07
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    5.95%

    Explanation:

    Preferred stock outstanding with a coupon rate of 5.70 percent : sells for $95.66 per share * the par value of $100

    5.70/95.66 X 100

    = 5.95%

    The cost of the company's preferred stock is 5.95%
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