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Subject: Financial strategy & policy Question No 3 (part ii) Answer the following. ii) XYZ Industries plans to issue perpetual preferred stock with an $11.00
Subject: Financial strategy & policy
Question No 3 (part ii)
Answer the following.
ii) XYZ Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $97.00;
but flotation costs will be 5% of the market price per share. What is the cost of the preferred stock, including flotation?
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