IVY has preferred stock selling for 97.4 percent of par that pays a 7.6 percent annual coupon. What would be IVY's component cost of preferred stock

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 4P
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IVY has preferred stock selling for 97.4 percent of par that pays a 7.6 percent annual coupon. What would be IVY's component cost of preferred stock?

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