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What is the company cost of preferred stock for use wacc

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Reference no: EM132494122

Question 1: Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

Reference no: EM132494122

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