What is fullers cost of preferred stock
Fuller Inc issued $100, 8% preferred stock five years ago. It is currently selling for $84.50. Assuming Fuller has to pay flotation costs of 10%, what is Fullers cost of preferred stock.
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Five year ago Hemingway Inc issued 6,000 30 year bonds with par values of $1,000 at a coupon rate of 8%. The bonds are now selling to yield 5%.
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