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E9-2 Profitable Consulting Investment Limited has been hired to evaluate the cost of a potential preferred stock offering by Life Insurance Group. This 6% preferred
E9-2 Profitable Consulting Investment Limited has been hired to evaluate the cost of a potential preferred stock offering by Life Insurance Group. This 6% preferred stock issue would be sold at its par value of $40 per share. Flotation costs would roral $5 per share. Calculate the cost of this preferred stock
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