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ABC Company's preferred stock is currently selling for $24.00, and pays an annual dividend of $2.40. Underwriters of a new issue of preferred stock would
ABC Company's preferred stock is currently selling for $24.00, and pays an annual dividend of $2.40. Underwriters of a new issue of preferred stock would charge $2 in flotation costs. Compute the cost of preferred stock for ABC. D=2.40 NP= kps=1
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