current price of a preferred share

cjs39922 · #1 Nov 3, 2009, 08:45 AM

a preferred share issue outstanding that pays an annual dividend of $1.30 per year. The current cost of preferred equity is 8.10 percent. If a company issues additional preferred shares that pay exactly the same dividend and the investment banker retains 5.40 percent of the sale price proceeds, what is the cost of new preferred shares?

morgaine300 · Nov 5, 2009, 03:05 PM

Please see the guidelines for posting homework problems:
http://www.askmehelpdesk.com/finance...-b-u-font.html

lir06003 · Yesterday, 08:36 PM

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