Cost of Preferred Stock Calculator

Calculate Cost of Preferred Stock



Formula

The formula to calculate the Cost of Preferred Stock (CPS) is:

\[ CPS = \left( \frac{DPS}{PPS} \right) \times 100 \]

Where:

What is Cost of Preferred Stock?

The cost of preferred stock is defined as the rate of return required by the holder of a company's preferred stock.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Cost of Preferred Stock:

\[ CPS = \left( \frac{5}{100} \right) \times 100 = 5\% \]

The Cost of Preferred Stock is 5%.