What is the cost of issuing preferred stock

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Hybrid Hydro Plants, Inc., which has a marginal tax rate equal to 40 percent, has preferred stock that pays a constant dividend equal to $15 per share. The stock currently sells for $120. If the company incurs a 5 percent flotation cost each time it issues preferred stock, what is the cost of issuing preferred stock?

Reference no: EM131354089

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