Warephase Corporation has preferred stock outstanding. The stock has a 15% dividend rate. The stock’s market price is $85 per share, and its par value is $77. If new shares are issued, the firm will pay $4 per share in flotation costs. The corporate tax rate is 21%. 

What is the company’s cost of preferred stock financing?

Answer rating: 100% (QA)

The cost of preferred stock financing can be calculated using the following formula Co... View the full answer