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What is the forms cost of preferred stock financing

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Reference no: EM131403279

Finance: Cost of equity financing

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Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $2.56 per year. That preferred stock is currently selling for $55.01. However, the underwriter would charge flotation costs of $3.59 per share. What is the form's cost of preferred stock financing?

Reference no: EM131403279

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