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Question 20) Carla Vista Hand Trucks has a preferred share issue outstanding that pays a dividend of $1.30 per year. The current cost of preferred
Question 20) Carla Vista Hand Trucks has a preferred share issue outstanding that pays a dividend of $1.30 per year. The current cost of preferred equity for Carla Vista is 10.00 percent. Carla Vista issues additional preferred shares that pay exactly the same dividend and the investment banker retains 8.20 percent of the sale price.
What is the current price of preferred shares?
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