New issue of preferred stock would have 3 per share in, Financial Management

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New issue of preferred stock would have 3 per share in

APR Company's preferred stock is currently selling for $28.00, and pays a perpetual annual dividend of $2.00 per share. New issue of preferred stock would have $3 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock?

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Financial Management: New issue of preferred stock would have 3 per share in

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