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help please, ill like response! Folio Inc.'s perpetual preferred stock sells for $88.75 per share, and it pays an $7.15 annual dividend. If the company
help please, ill like response!
Folio Inc.'s perpetual preferred stock sells for $88.75 per share, and it pays an $7.15 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? [Hint: Adjust the cost of preferred stock for flotation cost in the same manner as you would for common stock i.e. multiply the price by (1 - F).] 8.57% 8.06% 09.08% 9.27% 9.16% Step by Step Solution
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