Business
Business, 14.04.2020 23:42, Deascry

Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual dividend equal to 15.0% of par. The company believes that the market value of the stock would be $576.00 per share with flotation costs of $52.00 per share. The firm's marginal tax rate is 40%. What is the firm's cost of preferred stock?

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Costly Corporation is considering a new preferred stock issue. The preferred would have a par value...

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