=+LG 2 E73 Anson Construction wants to raise $5 million for a new construction project. The company

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=+LG 2 E7–3 Anson Construction wants to raise $5 million for a new construction project. The company is now evaluating two issue alternatives—a new issue of preferred stock with face value of $100 that pays a $5.40 dividend per year; and an additional 1 million shares with an offering price of $5 per share. Give two major differences between the options from the company’s perspective.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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