P98 Cost of preferred stock Determine the cost for each of the following preferred stocks. Preferred stock

P9–8 Cost of preferred stock Determine the cost for each of the following preferred stocks.

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Preferred stock Par value Sale price Flotation cost Annual dividend A $100 $101 $9.00 11% B 40 38 $3.50 8% C 35 37 $4.00 $5.00 D 30 26 5% of par $3.00 EE 20 20 $2.50 9%