Cost of preferred stock with flotation costs

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Cost of Preferred Stock with Flotation Costs %

Burnwood Tech plans to issue some $50 par preferred stock with a 6% dividend. A similar stock is selling on the market for $60. Burnwood must pay flotation costs of 4% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.

Reference no: EM132783210

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