Blue Panda has preferred stock that pays a dividend of $7.00 per share and sells for...
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Blue Panda has preferred stock that pays a dividend of $7.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.30%. How much will Blue Panda pay to the underwriter on a per-share basis? After it pays its underwriter, how much will Blue Panda receive from each share of preferred stock that it issues? Blue Panda has preferred stock that pays a dividend of $7.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.30%. How much will Blue Panda pay to the underwriter on a per-share basis? After it pays its underwriter, how much will Blue Panda receive from each share of preferred stock that it issues?
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Based on the image the underwriting cost for the new shares of preferred stock will be 23 of the 100 selling price per share So to calculate the cost ... View the full answer
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