Question
Annette's Travel Incorporated plans to issue preferred stock at a price of $50 per share. The dividend will be $4.30 per share, and issuance costs
Annette's Travel Incorporated plans to issue preferred stock at a price of $50 per share. The dividend will be $4.30 per share, and issuance costs are expected to be $3.00 per share. What is the cost to Annette's Travel of raising funds with preferred stock?
A. 19.15%
| B. 10.95% | |
| C. 13.33% | |
| D. 9.15% |
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
