Question
Sally Corporation will issue new preferred stock to finance an expansion. The existing preferred stock pays a dividend of 15.6% on a $50 par value.
Sally Corporation will issue new preferred stock to finance an expansion. The existing preferred stock pays a dividend of 15.6% on a $50 par value. The stock sells for $65. Flotation is estimated to be 5.0% of the stock price. What is the cost of preferred stock for Sally Corp.? D= Flotation= NP= kps=
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
