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hallenging roblems 4-20 COST OF PREFERRED STOCK INCLUDING FLOTATION Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently

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hallenging roblems 4-20 COST OF PREFERRED STOCK INCLUDING FLOTATION Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $108.50 but flotation costs will be 5% of the market price, so the net price will be $103.08 per share What is the cost of the preferred stock, including flotation? 10-14

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