Answer p9-7, p9-10, and p9-14

LG P9-7 Cost of profared stock Taylor Systems has just issued preferred stock. The stock has a 12% annual dvidend and a $100 par value and was sold at $97.50 per share. In addition, flotation costs of $2.50 per share must be paid a. Calculate the cost of the preferred stock b. If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after flotation costs, what is its cont