A preferred share sells for $ 200 with an annual dividend of $ 12. If the company sells new issues, the floating cost will be
A preferred share sells for $ 200 with an annual dividend of $ 12. If the company sells new issues, the floating cost will be around $ 7 per preferred share. Determine the cost of the preferred action.
a. 7%
b. 7.8%
c. 6.2%
d. 6%
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Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
