Bulldogs Inc. has sold 2,000 shares of P200 par, 4% preferred stock at an issue price of P184 per share. Share issue costs are fixed at P24 per share. What is Bulldogs Inc.’s cost of preferred stock capital? Assume 40% tax rate.
Bulldogs Inc. has sold 2,000 shares of P200 par, 4% preferred stock at an issue price of P184 per share. Share issue costs are fixed at P24 per share. What is Bulldogs Inc.’s cost of preferred stock capital? Assume 40% tax rate.
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 3PROB
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Bulldogs Inc. has sold 2,000 shares of P200 par, 4% preferred stock at an issue price of P184 per share. Share issue costs are fixed at P24 per share. What is Bulldogs Inc.’s cost of preferred stock capital? Assume 40% tax rate.
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