Issue more preferred shares paying the same dividend

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Reference no: EM131049727

Suppose a firm has a preferred stock that pays a $10 annual dividend (no growth expected in this payment) and currently sells for $90.00 per share. If it plans to issue more preferred shares paying the same dividend but also needs to incur a floatation cost of five percent, the firm's cost of preferred stock would be: please show solution

Reference no: EM131049727

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