What is the cost of the new preferred shares for retryder

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Question: RetRyder Hand Trucks has a preferred share issue outstanding that pays a dividend of $1.30 per year. The current cost of preferred equity for RetRyder is 9 percent. If RetRyder issues additional preferred shares at the same price and pays exactly the same dividend and the investment banker retains 8 percent of the sale price, what is the cost of the new preferred shares for RetRyder? (Keep two decimal places in the calculation.)

Reference no: EM133290567

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