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What is the cost of capital for the stock to your firm

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Reference no: EM131797046

Problem

Your firm is planning to issue preferred stock. The stock sell for Rm120; however, if new stock is issue, the company will receive only RM97. the par value of the stock is RM100, and the dividend rate is 13%. What is the cost of capital for the stock to your firm?

Reference no: EM131797046

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