What is the cost of new preferred stock

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1. South's preferred stock has a par value of $60 a share and a market price of $84 a share. Dividends per year are $6.2. What is the cost of existing preferred stock?

2. For the problem above, if the flotation cost for new preferred stock is $1.20, what is the cost of new preferred stock?

Reference no: EM131412792

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What is the cost of new preferred stock : For the problem above, if the flotation cost for new preferred stock is $1.20, what is the cost of new preferred stock?
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