Question
Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $99.50, but flotation costs will be 5%
Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $99.50, but flotation costs will be 5% of the market price, so the net price will be $94.53 per share. What is the cost of the preferred stock, including flotation?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
