A companys preferred stock currently trades for $50 per share and pays a $3 annual dividend. Flotation

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A company’s preferred stock currently trades for $50 per share and pays a $3 annual dividend. Flotation costs are equal to 3% of the gross proceeds. If the company issues preferred stock, what is the cost of that stock?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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