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What is the firm cost of preferred stock financing

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ABC Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $2.15 per year. That preferred stock is currently selling for $65.66. However, the underwriter would charge flotation costs of $3.00 per share.

What is the firm's cost of preferred stock financing?

Reference no: EM131669338

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