12-58. (Cost ofpreferred stock) The preferred stock of Gator Industries sells for $35 and pays $2.75 in

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12-58. (Cost ofpreferred stock) The preferred stock of Gator Industries sells for $35 and pays

$2.75 in dividends. The net price of the security after issuance costs is $32.50. What is the cost of capital for the preferred stock?

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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Question Posted: Jul 24, 2024 12:02 PM

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12-58. (Cost ofpreferred stock) The preferred stock of Gator Industries sells for $35 and pays $2.75 in

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Financial Management Principles And Applications

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