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Computing the cost of preferred? stock

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(Computing the cost of preferred? stock)

In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. Your firm is planning to issue preferred stock. The stock is expected to sell for ?$98.94 a share and will have a ?$100 par value on which the firm will pay a 9.5 percent dividend. What is the cost of capital to the firm for the preferred? stock?

Reference no: EM131624009

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