Strategies for Short-Term and Long-Term Financing Flashcards
1
Q
Cost of Stock Formula
A
Annual Dividends
________________________ = Cost of Stock
Net Proceeds from Stock Issuance
2
Q
Cost of Preferred Stock Formula
A
Percent of Par Value paid in Dividend annually
___________________________________
Net Proceeds from Stock issuance
3
Q
Cost of Retained Earnings Formula
A
Annual Dividend
______________
GROSS proceeds of stock