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Tunney Industries can issue perpetual preferred stock at a price of $53.00 a share. The stock would pay a constant annual dividend of $7.00 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. 2(Thomas Brothers is expected to pay a $1.6 per share dividend at the end of the year (that is, D1 = $1.6). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 18%. What is the stock's current value per share? Round your answer to two decimal places.

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Financial Management, Finance

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