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Business, 04.08.2021 15:10 amay1977

A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is offered, flotation costs will be 3 percent of the current market price of $80. The firm's marginal tax rate is 35 percent. What is the firm's cost of preferred stock financing

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A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is off...

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