Question
Livif Inc. is currently paying dividends of 4% per year on $120 par value preferred stock. The current price of Livif common stock is $130.27
Livif Inc. is currently paying dividends of 4% per year on $120 par value preferred stock. The current price of Livif common stock is $130.27 per share. Flotation costs are 10% of the market price when Livif issues new preferred stock. What is Livif's cost of new preferred stock? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
