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What is the cost of the preferred stock

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Problem - COST OF PREFERRED STOCK INCLUDING FLOTATION - Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $108.50, but flotation costs will be 5% of the market price, so the net price will be $103.08 per share. What is the cost of the preferred stock, including flotation?

Reference no: EM132816584

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