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Thurman industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $105.20, but flotation costs would be 10 percent of the market price. What is the stock after taking flotation costs into account?

A. 12.67% B. 11.41% C. 10.27% D. 11.25% E 14.51%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92326005

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