Hettenhouse Companys (HC) perpetual preferred stock sells for $105.50 per share, and it pays a $8.75 annual dividend. If the company were to sell a
Hettenhouse Companys (HC) perpetual preferred stock sells for $105.50 per share, and it pays a $8.75 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.0% of the price paid by investors. HCs marginal tax rate is 30%. What is the company's cost of preferred stock for use in calculating the WACC?
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Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
