Disadvantages of using preferred stock in capital structure

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Reference no: EM131067226

Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?

Reference no: EM131067226

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