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One share of perpetual-preferred stock of Portsmouth Ceramics sells for 97.50 per share, and it pays an 8.50 yearly dividend. If the Portsmouth Ceramics were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by venture capitalists. What is Portsmouth Ceramics' cost of preferred stock for use in calculating the WACC?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M941466

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