stock has 8% annual dividend and $100 par value and was sold a t$99.50 per share. Flotation cost of $1.50 per share.

A) Calculate cost of preferred stock

B) If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after flotation cost, what is its cost?

Answer rating: 100% (QA)

A Calculate the cost of preferred stock The cost of preferred stock can be calcu... View the full answer