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Posted: **Tue Jan 18, 2022 12:57 pm**

: Q4 L M Preferred Stock Is Selling For 28 A Share The Firm Issuance Costs Are 10 Of The Selling Price The Stock Pays 1 (22.81 KiB) Viewed 51 times

Q4.L&M preferred stock is selling for $28 a share. The firm issuance costs are 10% of the selling price. The stock pays an annual dividend of $1.8 per share. What is the cost of existing, and new, preferred stock respectively? (5 marks)