Question
Taylor Systems has just issued preferred stock. The stock has a 8% annual dividend and a $50 par value and was sold at $51.00 per
Taylor Systems has just issued preferred stock. The stock has a 8% annual dividend and a $50 par value and was sold at $51.00 per share. In addition, flotation costs of $3.50 per share were paid. Calculate the cost of the preferred stock. What is the cost of the preferred stock?
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Step: 1
To calculate the cost of preferred stock we need to consider the dividend rate the p...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
1292018208, 978-1292018201
