Cost of Preferred Stock Calculator
Cost of Preferred Stock Calculator
Component |
Description |
Annual Dividends |
The total annual dividends paid to preferred shareholders. |
Market Price per Share |
The current market price of one share of preferred stock. |
Cost of Preferred Stock |
The cost of issuing preferred stock, expressed as a percentage. |
Formula |
Cost of Preferred Stock = Annual Dividends / Market Price per Share |
Purpose |
Used to calculate the cost of preferred stock financing for a company, helping to assess its impact on financial strategy. |