Burnwood tech plans to issue some 5665 par preferred stock


Burnwood Tech plans to issue some $56.65 par preferred stock with a 6.87% dividend. A similar stock is selling on the market for $50.45. Burnwood must pay flotation costs of 9.69% of the issue price. What is the cost of the preferred stock? SHOW WORK AND EXPLAIN ANSWER

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Financial Management: Burnwood tech plans to issue some 5665 par preferred stock
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