Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 5P
Related questions
Question
A firm has 8% dividend preferred stock with a par value of $100 issued and outstanding. The stock is currently selling for $98.50 in the market today. If the firm is to issue new preferred shares to fund a portion of the new capital expenditures, what is the cost of new preferred share funding?
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