E92 Your firm, Peoples Consulting Group, has been asked to consult on a potential preferred stock offering

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E9–2 Your firm, People’s Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 15% preferred stock issue would be sold at its par value of $35 per share. Flotation costs would total $3 per share.

Calculate the cost of this preferred stock.

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