What is trhe relevalent cost of preferred stock

Reference no: EM13305612

General Bill's will issue preferered stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of 4.00 per share and is selling for $40 per share. Investment bankers have advised General Bill that flotation costs on the new preferred issue would be 5% of the selling price. The general's marginal tax rate is 30%. What is trhe relevalent cost of preferred stock?

Reference no: EM13305612

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