Share repurchases are not part of the stock valuation process ...

[fahad]

Share repurchases are not part of the stock valuation process because by definition the cash flow
  from a share repurchase ends the investment as the stock is no longer owned by the shareholder.
 
  Indicate whether the statement is true or false

Question 2

JPR Company's preferred stock is currently selling for 28.00, and pays a perpetual annual
  dividend of 2.00 per share. Underwriters of a new issue of preferred stock would charge 3 per
  share in flotation costs. The firm's tax rate is 40.
 
  Compute the cost of new preferred stock for JPR.
  A) 8.00 B) 4.80 C) 7.14 D) 9.15

[Loise Hard]

Answer to Question 1

FALSE

Answer to Question 2

A

[fahad]

Thank you

[Loise Hard]

No problemo