Job Cart Inc. has a preferred stock paying a 7% dividend on a $100 par value. The
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Question:
Job Cart Inc. has a preferred stock paying a 7% dividend on a $100 par value. The company issues new preferred stock, and the flotation cost will be 8% of the current price of $95.74. What is the cost of preferred stock?
A).95%
B)7.61%
C)7.31%
D)6.77%
Related Book For
Foundations Of Finance
ISBN: 9780135160619
10th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
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