What would be company cost of preferred stock

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Reference no: EM131863421

Company XYZ doesn't have any preferred stock outstanding, but plans to issue some in the future and therefore has included it in its target capital structure. Company XYZ would sell this stock to a few large hedge funds, the stock would have a $3.75 dividend per share, and it would be priced at $91.75 a share. What would be Company XYZ's cost of preferred stock?

Reference no: EM131863421

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