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Business, 03.04.2020 15:36 nickname0097

A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred stocks are current selling in the market for Pp = $28. If the firm expects flotation costs of 8% per share, then what is the cost of newly issued preferred stock to the firm? The firms tax rate = 40%.

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A company plans to issue new Preferred Stock that pays 6% on the Par Value of $25. Similar preferred...

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