Solved Cost of Preferred Stock with Flotation Costs Burnwood
Question: Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $70 par preferred stock with a 6% dividend. A similar stock is selling on the market for $85. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.
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