Ten years ago, stigler company issued $100 par value preferred stock yielding 6%. the preferred stock is now selling for $102 per share. what is the approximate current yield or cost of the preferred stock? (disregard flotation costs.) multiple choice there is not enough information to answer the question. 5.9% 8% 7.76%

Option (B) is correct.

Explanation:

Par value of preferred stock = $100

Yielding = 6%

Current market price = $102 per share

Dividend = Yielding × Par value of preferred stock

               = 0.06 × $100

               = $6

Cost of preferred stock = (Dividend ÷ Current Market Price) × 100

                                       = ($6 ÷ $102) × 100

                                       = (0.058) × 100

                                       = 5.9%

107x106 is the answer