Thurman industries plans to issue a 100 par perpetual


Question: Thurman industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $105.20, but flotation costs would be 10 percent of the market price. What is the stock after taking flotation costs into account?

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Finance Basics: Thurman industries plans to issue a 100 par perpetual
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