Bosio incs perpetual preferred stock sells for 8750 per, Ask an Expert

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Bosio Inc.'s perpetual preferred stock sells for $87.50 per share, and it pays an $6.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? Please show all work..

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9948356

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