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Maness Industries plans to issue some $ 1 0 0 par preferred stock with an 1 1 percent dividend. The stock is selling on the

Maness Industries plans to issue some $100 par preferred stock with an 11 percent dividend. The stock is selling on the market for $97, and Maness must pay flotation costs of 5 percent of the market price. What is the cost of the preferred stock for Maness? provide an explanation as to what the cost of preferred stock implies for the firm'

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