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Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $120 and a dividend rate of
Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of
$120
and a dividend rate of
8.6%.
The stock is selling for
$72.89
in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of
2%
on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investment banker?
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