Question
A companys perpetual preferred stock currently sells for $115.00 per share, and it pays an $10.00 annual dividend. If the company were to sell a
A companys perpetual preferred stock currently sells for $115.00 per share, and it pays an $10.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock?
| 7.32% | ||
| 9.15% | ||
| 8.08% | ||
| 10.00% | ||
| 5.18% |
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
