Cost of capital to the firm for the preferred stock

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Your firm is planning to issue preferred stock. The stock is expected to sell for $98.74 a share and will have a $100 par value on which the firm will pay a 13.1 percent dividend. What is the cost of capital to the firm for the preferred stock?

Reference no: EM131308835

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Cost of capital to the firm for the preferred stock : Your firm is planning to issue preferred stock. The stock is expected to sell for $98.74 a share and will have a $100 par value on which the firm will pay a 13.1 percent dividend. What is the cost of capital to the firm for the preferred stock?

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