Burnwood Tech plans to issue some $80 par preferred stock with a 7% dividend. A similar stock is selling on the market f

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answerhappygod
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Burnwood Tech plans to issue some $80 par preferred stock with a 7% dividend. A similar stock is selling on the market f

Post by answerhappygod »

Burnwood Tech plans to issue some $80 par preferred stock with a
7% dividend. A similar stock is selling on the market for $90.
Burnwood must pay flotation costs of 5% of the issue price. What is
the cost of the preferred stock? Round your answer to two decimal
places
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