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The Dowel Jones Company is planning to issue 10,000 shares of $100 preferred stock.

(a) If flotation costs amount to 3%, what will be the net proceeds of the issue to the firm?

(b) If the dividend is $7 annually, what will be the effective cost of preferred stock to the firm?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9290378

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