Problemecotours incs perpetual preferred stock currently, Ask an Expert

Finance

Problem:

EcoTours, Inc.'s perpetual preferred stock currently trades at $69.75 per share, and it pays a $1.35 quarterly dividend. If the company were to sell a new preferred issue, it would incur flotation costs of 4.50% of the issue price.

Required:

Question 1: What is EcoTours' cost of preferred stock?

Explain comprehensively and show all calculation.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147335

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