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Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $105.00, but flotation costs will be 5% of the market price, so the net price will be $99.75 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.

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ISBN: 9781285660516
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Publisher: Cengage
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Related Finance Q&A

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Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

A: Cost of preferred stock = Dividend / Net Price

Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

A: Cost of preferred stock = Dividend / Net Price

Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

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Q: Travis Industries plans to issue perpetualpreferred stock with an $11.00 dividend. The stock is…

A: Click to see the answer

Q: Burnwood Tech plans to issue some $50 par preferred stock with a 8% dividend. A similar stock is…

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Q: Need help on all

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Q: Farris Inc. has perpetual preferred stock outstanding that sells for $38 a share and pays a dividend…

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