Calculating the weighted average cost of capital

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Bostwick company perpetual preferred stock sells for $85 per share and it pays $6.90 annual didvidend. if the company were to sell a new preferred issue, it would incur a floatation of 4% of price paid by investors. what's the company cost of preferred stock for use in calculating the weighted average cost of capital?

 

Reference no: EM131920193

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