Answer BOTH Questions #1 & 2. Fill in all the missing information for both questions.

1) Company A, is issuing Preferred Stock at $20, with a floatation cost of $1.00. Its paying Preferred Dividends of $1.50. Calculate for the Cost of Preferred Stock as a % and $ value.

2) Company B, is issuing Common Stock at $30 at a Rate of 3.5%, with a float cost of $1.00. It is paying $1.75 in Dividends on each share. How much does it Cost the Company to issue New Common Equity?

Company A, is issuing Preferred Stock at $20, with a floatation cost of $1.00. Its paying Preferred Dividends of $1.50. Calculate for the Cost of Preferred Stock as a % and $ value. 1 Cost of Preferred Stock Data Pref Div / Pref Price/ (1- Float) - Preferred Stock Price (P) $ Floatation Cost $ Preferred Dividend (Dps) $ 20.00 Net Stock Price (Pent) Floatation % (f) Cost of Preferred stock 96 (Rps) 1.00 5% 1.50 Cost of Preferred stock $ Company B, is issuing Common Stock at $30 at a Rate of 3.5%, with a float cost of $1.00. It is paying $1.75 in Dividends on each share. How much does it Cost the Company to issue New Common Equity? Cost of New Common Equity Div / (Cost common-Float) + Rate Dividend:s Common Stock Rate Float cost Cost New Common Equity Data 1.75 30.00 3.50%