Flotation costs for new issuances of preferred stock are 5
A firm's preferred stock pays an annual dividend of $4, and the stock sells for $80. Flotation costs for new issuances of preferred stock are 5% of the stock value. What is the cost of preferred stock to the firm?
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a firms preferred stock pays an annual dividend of 4 and the stock sells for 80 flotation costs for new issuances of
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