Evaluate the cost of preferred stock
Question: What is the cost of Preferred Stock?Kp = Cost of preferred stock X
Dp = The annual dividend on preferred stock $8.00
Pp = The price of preferred stock $95.00
F = Flotation, or selling cost $3.00
Now Priced at $20 (50% Discount)
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Question: What are some similarities and differences between common stock and preferred stock?
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Question: What is the cost of Preferred Stock?
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