Question
APR Company's preferred stock is currently selling for $28.00, and pays a perpetual annual dividend of $2.00 per share. New issue of preferred stock would
APR Company's preferred stock is currently selling for $28.00, and pays a perpetual annual dividend of $2.00 per share. New issue of preferred stock would have $3 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
