1. Bosio Inc.'s perpetual preferred stock sells for $137.50 per share, and it pays an $8.50...
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1. Bosio Inc.'s perpetual preferred stock sells for $137.50 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 of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 7.08% b. 6.830 c. 5.99% d. 7.02% e. 6.44% 1. Bosio Inc.'s perpetual preferred stock sells for $137.50 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 of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 7.08% b. 6.830 c. 5.99% d. 7.02% e. 6.44%
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