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Sattelite Share Company plans to sale preferred stock with par value of Br. 50 per share. The issue is expected to pay quarterly dividends of
Sattelite Share Company plans to sale preferred stock with par value of Br. 50 per share. The issue is expected to pay quarterly dividends of Br. 1.25 per share and to have flotation costs of 6% of the par value. The preferred stock sells at 95% of its par.
Required:Calculate the cost of preferred stock to Satellite Share Company.
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