(Cost of preferred stock) The preferred stock of Gator Industries sells for % 34.77 and pays $2.73 per year in dividends. What is the cost of preferred stock financing? IF Gator were to issue 490,000 more preferred shares just like the ones it currently has outstanding, it could sell them for $34.77 a share but would incur floatation costs of $3.09 per share.
1. What is the floatation costs adjusted initial outlay for issuing the preferred shares? (Round to the nearest dollar)