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

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2
Q

Cost of Preferred Stock Formula

A

Percent of Par Value paid in Dividend annually
___________________________________
Net Proceeds from Stock issuance

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3
Q

Cost of Retained Earnings Formula

A

Annual Dividend
______________
GROSS proceeds of stock

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