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Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital

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Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital markets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stockholders. Consider the case of Peaceful Book Binding Company Peaceful Book Binding Company has preferred stock that pays a dividend of $9 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 1.3%. How much wall Peaceful Book Binding Company pay per share to the undervititer? $98.70 per share 388.03 persthare $1.30 per share 5t.43 perstare Based on this informacion, what is PeaceffI Book. Binding Company's cour of preferted totock capical? 5.12% 8.66% 10.035 7.754 Companits make tax adjustmenta when cal culating the faftertar) cat of pieferred took besause preferted cividends

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