Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $91.00, but flotation costs will be 8% of the market price, so the net price will be $83.72 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.
Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $91.00, but flotation costs will be 8% of the market price, so the net price will be $83.72 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 2Q
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Travis Industries plans to issue perpetual
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