A share of perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual
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A share of perpetual preferred stock sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
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Anurag Agrawal
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-1285867977
14th edition
Authors: Eugene F. Brigham, Joel F. Houston
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