Question
A company has preferred stock that can be sold for $21 per share. The preferred stock pays an annual dividend of $3.5 per share. Flotation
A company has preferred stock that can be sold for $21 per share. The preferred stock pays an annual dividend of $3.5 per share. Flotation costs associated with the sale of preferred stock equal $1.75 per share. The company's marginal tax rate is 35%. Therefore, the cost of preferred stock is?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
