12-78. (Cost ofpreferred stock) Your firm is planning to issue preferred stock. The stock sells for $120;

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12-78. (Cost ofpreferred stock) Your firm is planning to issue preferred stock. The stock sells for

$120; however, if new stock is issued, the company would receive only $97. The par value of the stock is $100, and the dividend rate is 13 percent. What is the cost of capital for the stock to your firm?

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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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12-78. (Cost ofpreferred stock) Your firm is planning to issue preferred stock. The stock sells for $120;

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Financial Management Principles And Applications

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