At what price per share will the preferred stock be offered

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Question - The O.K. Railroad needs to raise $9.5 million for capital improvements. One possibility is a new preferred stock issue - 8 percent dividend, $100 par value - stock that would yield 9 percent to investors. Flotation costs for an issue this size amount to 5 percent of the total amount of preferred stock sold. These costs are deducted from gross proceeds in determining the net proceeds to the company. (Ignore any tax considerations.)

-At what price per share will the preferred stock be offered to investors? (Assume that the issue will never be called.)Required to answer. Single line text. 

-How many shares must be issued to raise $9.5 million for the O.K. Railroad?

Reference no: EM132993204

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