Home depot needs to estimate the cost of financing on


Home Depot needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.35 per year. That preferred stock is currently selling for $79.36. However, the underwriter would charge flotation costs of $2.46 per share. What is the firm's cost of preferred stock financing?

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Financial Management: Home depot needs to estimate the cost of financing on
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