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A company's perpetual preferred stock currently sells for $92.50 per share and it pays an $8.00 annual dividend. If the
Posted: Fri Jul 01, 2022 7:50 am
by answerhappygod
- A Company S Perpetual Preferred Stock Currently Sells For 92 50 Per Share And It Pays An 8 00 Annual Dividend If The 1 (26.13 KiB) Viewed 33 times
A
company's perpetual preferred stock currently sells for $92.50 per share and it pays an $8.00 annual dividend. If the
company were to sell a new preferred issue, it would incur a flotation cost of 9% of the issue price. What is the firm's cost of preferred stock? 7.8% 8.2% 8.7% 9.5% 10.3%