What is the cost of preferred stock

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Problem - General Bill's will issue preferred stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of 4.0% on $100 par value per share and is selling for $32 per share. Investment bankers have advised General Bill that flotation costs on the new preferred issue would be 3.5% of the selling price. What is the cost of preferred stock?

Reference no: EM132748679

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