Problemkresler autos has preferred shares outstanding that, Ask an Expert

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Problem:

Kresler Autos has preferred shares outstanding that pay annual dividends of $14, and the current price of the shares is $98.

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Question: What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for preferred are 5 percent?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167689

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