Question
Bob's Stuff Inc has preferred stock with a stated dividend of $2.66, which is currently trading at $28.75 per share, and Bob believes that the
Bob's Stuff Inc has preferred stock with a stated dividend of $2.66, which is currently trading at $28.75 per share, and Bob believes that the company can issue additional shares at that price, but with flotation costs at 7% of the selling price. What is Bob's cost of preferred stock? (Show work and equation)
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
