Question: A preferred stock paying a 9 percent dividend on a $150 par value if a new issue is offered, flotation costs will be 12 percent

A preferred stock paying a 9 percent dividend on a $150 par value if a new issue is offered, flotation costs will be 12 percent of the current price of $175.

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A preferred stock paying a 9 percent dividend on a $150 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $175. Find the cost of preferred stock

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