Bosio incs perpetual preferred stock sells for 8750 per

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Bosio Inc.'s perpetual preferred stock sells for $87.50 per share, and it pays an $6.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? Please show all work.

Reference no: EM13570773

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