Sunland Hand Trucks has a preferred share issue outstanding that pays a dividend of $$1\mathrm{.}30$ per year. The current cost of preferred

equity for Sunland is $10\mathrm{.}80$ percent. If Sunland issues additional preferred shares that pay exactly the same dividend and the

investment banker retains $7\mathrm{.}00$ percent of the sale price.

Problem $13\mathrm{.}31$ a$1-$a$2($Solution Video$)($a$1)$

What is the price of preferred shares before the new issues? $($Round final answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Current price of preferred shares