A firm has 8% dividend preferred stock with a par value of $100 issued and outstanding. The stock is currently selling for $98.50 in the market today. If the firm is to issue new preferred shares to fund a portion of the new capital expenditures, what is the cost of new preferred share funding?

Answer rating: 100% (QA)

The cost of new preferred share funding can be calculated using the formula for the cost ... View the full answer