The preferred stock of Julian Industries sells for $36 and pays $3.00 in dividends. The net price of the security after issuance costs is $32.50. What is the cost of capital for the preferred stock?
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Jackson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds?
|Years to Maturity
|Going rate, rd
|Value of bond =
Current market price of these bonds = $ 928.39