Question
APR Company's preferred stock is currently selling for $24.00, and pays a perpetual annual dividend of $2.80 per share. New issue of preferred stock would
APR Company's preferred stock is currently selling for $24.00, and pays a perpetual annual dividend of $2.80 per share. New issue of preferred stock would have $4 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock.
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
