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Your firm is planning to issue preferred stock. The stock sells for $116; however, if new stock is issued, the company would receive only $102.08.
Your firm is planning to issue preferred stock. The stock sells for $116; however, if new stock is issued, the company would receive only $102.08. The par value of the stock is $100, and the dividend rate is 17%. What is the cost of capital for the stock to your firm?
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
