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Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of
Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.20 per year. That preferred stock is currently selling for $54.17. However, the underwriter would charge flotation costs of $4.39 per share. What is the forms cost of preferred stock financing?
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