Question
El Norte Industries will issue $100 par, 12 percent preferred stock. The market price for the stock is expected to be $89 per share. El
El Norte Industries will issue $100 par, 12 percent preferred stock. The market price for the stock is expected to be $89 per share. El Norte must pay flotation costs of 5 percent of the market price. What is El Norte's cost of preferred stock?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
