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Determine the cost of the preferred stock

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Reference no: EM132984087

Question - A firm just issued new preferred stock at its $125 per share par value. The stock pays 15% annual dividend. The cost of issuing and selling the stock (floating cost) is 5%. Determine the cost of the preferred stock?

a. 12.36 percent

b. 12 percent

c. 13 percent

d. 13.64 percent

Reference no: EM132984087

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