Calculate the cost of the preferred stock

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Reference no: EM131063053

Mavis Taylor Corporation has just issued preferred stock. The stock has a 6% annual dividend and a $100 par values, and was sold at $98.5 per share. Flotations costs were an additional $3 per share.

a. Calculate the cost of the preferred stock

b. If the firm sells the preferred stock with a 10% annual dividend and net $93.00 after flotation costs, what is the cost?

Reference no: EM131063053

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