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cjs39922
Nov 3, 2009, 09:45 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, 04:05 PM
Please see the guidelines for posting homework problems:
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lir06003
Nov 22, 2009, 09:36 PM
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dileepasampath
Nov 24, 2009, 02:24 AM
First let us know what have you already done to solve this? Just pass your comments.. Then I will answer.. It seems this is from your home work.