A companys perpetual preferred stock currently sells for, Ask an Expert

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A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? Show work.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91592514

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