(Answered) Computing the cost of preferred stockin the spring of 2017

Finance

(Computing the cost of preferred? stock)

In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. Your firm is planning to issue preferred stock. The stock is expected to sell for ?$98.94 a share and will have a ?$100 par value on which the firm will pay a 9.5 percent dividend. What is the cost of capital to the firm for the preferred? stock?

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