Find what is the firm cost of preferred stock financing

Reference no: EM132009796

Question: 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 $2.58 per year. That preferred stock is currently selling for $65.97. However, the underwriter would charge flotation costs of $4.26 per share. What is the firm's cost of preferred stock financing?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Reference no: EM132009796

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