A companys perpetual preferred stockcurrently trades at 80


A company's perpetual preferred stockcurrently trades at $80 per share and pays a $6.00 annual dividendper share. If the company were to sell a new preferred issue,it would incur a flotation cost of 4%. What would the cost of that capital be?

7.51%
7.81%
7.99%
8.36%
8.62%

 

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Finance Basics: A companys perpetual preferred stockcurrently trades at 80
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