Compute the cost of preferred stock for schuss inc

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Question - Schuss Inc. can sell preferred shares for $94 with an estimated flotation cost of $2.00. The preferred stock is anticipated to pay $8 per share in dividends.

a. Compute the cost of preferred stock for Schuss Inc.

b. Do we need to make a tax adjustment for the issuing firm?

Reference no: EM133137079

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