Estimate the cost of financing on preferred stock

Reference no: EM131538409

Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.38 per year. That preferred stock is currently selling for $66.61. However, the underwriter would charge flotation costs of $2.29 per share. What is the form’s cost of preferred stock financing? Round the answers to two decimal places in percentage form.

Reference no: EM131538409

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