Question
WILL UPVOTE!!! question 3 A perpetual preferred stock sells for $160.00 per share, and it pays an $16.00 annual dividend. If the company were to
WILL UPVOTE!!! question 3
A perpetual preferred stock sells for $160.00 per share, and it pays an $16.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
| 2.66% | ||
| 6.00% | ||
| 10.64% |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
