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    samphea's Avatar
    samphea Posts: 1, Reputation: 1
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    #1

    Jun 5, 2008, 10:39 PM
    Cost of preferred stock
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 6, 2008, 08:36 PM
    Since we are not here to just do your problem for you, you should post the work you have attempted to do so that someone can check where you might be going wrong. It sounds like you tried but couldn't get the correct answer. We like to see that you've made an attempt to do it yourself first.
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