12. Burger Queen can sell preferred stock for $70 with an estimated flotation cost of $2.50. It...

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12. Burger Queen can sell preferred stock for $70 with an estimated flotation cost of

$2.50. It is anticipated the preferred stock will pay $6 per share in dividends.

a. Compute the cost of preferred stock for Burger Queen.

b. Do we need to make a tax adjustment for the issuing firm?

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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