Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual
Fantastic news! We've Found the answer you've been seeking!
Question:
Perpetual preferred stock from Franklin Inc. 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 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. 10.22% b. 8.72% c. 9.82% d. 9.08% e. 9.44%
Posted Date: