What is the cost of new preferred stock

Reference no: EM13265578

South's preferred stock has a par value of $80 a share and a market price of $48 a share. Dividends per year are $6.2. What is the cost of existing preferred stock?

For the problem above, if the flotation cost for new preferred stock is $1.20, what is the cost of new preferred stock?

Reference no: EM13265578

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