What is the company cost of preferred stock

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Jones Supplies can issue perpetual preferred stock at a price of $68.50 per share with an annual dividend of $4.50 a share. Ignoring flotation costs, what is the company's cost of preferred stock?

What would the cost of the preferred stock be with a flotation cost of 5%?

No flotation cost:

With flotation costs:

Reference no: EM132652287

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