Component cost of preferred stock

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XYZ, Inc. sold a 10% perpetual preferred stock offering with a $100 par value. The amount the firm received after flotation costs was $98.50. What is the component cost of preferred stock?

Reference no: EM131101159

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Component cost of preferred stock : XYZ, Inc. sold a 10% perpetual preferred stock offering with a $100 par value. The amount the firm received after flotation costs was $98.50. What is the component cost of preferred stock?
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