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Please answer all, thank you! Taylor Systems has just issued preferred stock. The stock has a 12% annual dividend and a $100 par value and
Please answer all, thank you!
Taylor Systems has just issued preferred stock. The stock has a 12% annual dividend and a $100 par value and was sold at $97.50 per share. In addition, flotation costs of $2.50 per share must be paid. Calculate the cost of the preferred stock. If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after floatation costs, what is it's cost? The cost of the preferred stock is %. (Round to two decimal places.) The cost of the preferred stock is %. (Round to two decimal places.)Step by Step Solution
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