samphea
Jun 5, 2008, 10:39 PM
Please help on this solution. I couldn't get the answer of cost of preferred stock.
Question: Company A, the problem solvers, want to issue new preferred stocks. The preferred dividend is $4.00 per share, the stock can be sold for $40, and the floatation costs are $1.00. What is the cost of preferred stock?
Thanks
Question: Company A, the problem solvers, want to issue new preferred stocks. The preferred dividend is $4.00 per share, the stock can be sold for $40, and the floatation costs are $1.00. What is the cost of preferred stock?
Thanks