What is the cost of capital to the firm for preferred? stock

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Question 1: In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. Your firm is planning to issue preferred stock. The stock is expected to sell for ?$97.48 a share and will have a ?$100 par value on which the firm will pay a 10.3 percent dividend. What is the cost of capital to the firm for the preferred? stock?

Reference no: EM132873417

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