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  • Cost of Preferred Stock (RP) Dividend Price / Stock Price RP (With Growth) Dividend at Y1 / Stock Price + Growth Rate

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    GolamMostafa
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    This document provides a calculator to determine the cost of preferred stock. The cost of preferred stock is calculated as the annual dividend divided by the stock price. If the dividend is expected to grow, the cost is calculated as the initial dividend divided by the sum of the stock price and the growth rate. In this example, with a $3 dividend and $21 stock price, the cost of preferred stock is 16.57%.

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    Cost-of-Preferred-Stock-Calculator.xlsx

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    This document provides a calculator to determine the cost of preferred stock. The cost of preferred stock is calculated as the annual dividend divided by the stock price. If the dividend is expected to grow, the cost is calculated as the initial dividend divided by the sum of the stock price and the growth rate. In this example, with a $3 dividend and $21 stock price, the cost of preferred stock is 16.57%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    8 views1 page

    Cost of Preferred Stock (RP) Dividend Price / Stock Price RP (With Growth) Dividend at Y1 / Stock Price + Growth Rate

    Uploaded by

    GolamMostafa
    This document provides a calculator to determine the cost of preferred stock. The cost of preferred stock is calculated as the annual dividend divided by the stock price. If the dividend is expected to grow, the cost is calculated as the initial dividend divided by the sum of the stock price and the growth rate. In this example, with a $3 dividend and $21 stock price, the cost of preferred stock is 16.57%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    Cost of Preferred Stock Calculator

    Cost of Preferred Stock (Rp) = Dividend Price / Stock Price


    Rp (with Growth) = Dividend at Y1 / Stock Price + Growth Rate

    Dividend (in dollars) 3


    Stock Price (in dollars) 21
    Growth Rate (Optional leave blank if no growth) 2%

    Rp = 16.57%

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