Question
Bobs stuff, INC has preferred stock with a stated dividend of $3.57, which is currently trading at 25.6 per share. Bob bleives he can sell
Bobs stuff, INC has preferred stock with a stated dividend of $3.57, which is currently trading at 25.6 per share. Bob bleives he can sell shares at that cost, but with flotation costs at 7% of the selling price.
What is Bobs cost of preferred stock?
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ISE Analysis For Financial Management
Authors: Robert C. Higgins Professor, Jennifer Koski
13th International Edition
1265042632, 9781265042639
