Taylor Systems has just issued preferred stock. The stock has a 8% annual dividend and a $50 par value and was sold at $51.00 per share. In addition, flotation costs of $3.50 per share were paid. Calculate the cost of the preferred stock. What is the cost of the preferred stock?

 

Answer rating: 100% (QA)

To calculate the cost of preferred stock we need to consider the dividend rate the p... View the full answer