Discuss the offer of preferred shares

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Reference no: EM13943283

Use the CAPM to calculate the required return on investment.

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The company Maximum All-Stars, Inc. like to discuss the offer of preferred shares of the company West Coast International. The company plans to issue 15% of preferred shares to sell at par value of $ 63 per share. Costs incurred in this issue (flotation costs) are $ 7 per share. Calculate the cost of these preferred shares.

Reference no: EM13943283

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