Question
Wisteria Inc.'s preferred stock sells for $85.00 per share, and it pays an $8.50 annual dividend. If the company were to sell new preferred stock,
Wisteria Inc.'s preferred stock sells for $85.00 per share, and it pays an $8.50 annual dividend. If the company were to sell new preferred stock, it would incur a flotation cost of 4.00% of the price paid by investors. What is Wisterias cost of preferred stock for use in calculating the WACC?
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Contemporary Financial Management
Authors: Don Cyr, Alfred Kahl, William Rentz, R. Moyer
1st Edition
017616992X, 978-0176169923
