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Accounting

Problem:

Trina Industries plans to issue a perpetual preferred stock with an $11.00 dividend. Stock currently sells for $97.00, but floatation cost will be 5% of the market price, so the net price would be $92.15/share.

Required:

Question: What is the cost of preferred stock including floatation?

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173184

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