Cost of the preferred stock of trivoli industries


Trivoli Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $97.00; but flotation costs will be 5% of the market price, so the net price will be $92.15 per share. What is the cost of the preferred stock, including flotation?

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Finance Basics: Cost of the preferred stock of trivoli industries
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